The concept of present value relates to the idea that

Review question 2

Quiz
•
Business
•
1st - 5th Grade
•
Hard
Trinh Pham
Used 2+ times
FREE Resource
11 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
45 sec • 1 pt
The discount rate is always higher when you invest now than in the future
The discount rate is always higher when you invest in the future than now
The money you have now is worth less today than an identical amount you would receive in the future
The money you have now is worth more today than an identical amount you would receive in the future
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
The formula for calculating future value (FV) is
FV = PV/(1+r)^n
FV = PV/(1+r)*n
FV = PV x (1+r)^n
FV = PV x (1+r)*n
3.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
What is a par value of a bond?
The amount borrowed by the issuer of the bond and returned to the investors when the bond matures
The overall return earned by the bond investor when the bond matures
The difference between the amount borrowed by the issuer of bond and the amount returned to investors at maturity
The size of the coupon investors receive on an annual basis
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
When the price of a bond is above the face value, the bond is said to be
Trading at par
Trading at a premium
Trading at a discount
Trading below par
5.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
Which of the following is true when a bond is trading at a discount?
Coupon Rate > Current Yield > Yield to Maturity
Coupon Rate < Current Yield < Yield to Maturity
Coupon Rate = Current Yield = Yield to Maturity
Coupon Rate < Current Yield = Yield to Maturity
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Primary market is known
Capital market
Money market
Financial market
New issue market
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Financial assets include
Bonds
Stocks
Treasury bills
All of the above
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