Financial Mgmt Chapter 3 Quiz
A $1,000 face value bond has a 7.85 percent semi-annual coupon and sells for $982.50. What is the current yield?
7.61 percent
7.89 percent
7.82 percent
7.75 percent
7.99 percent Question 2: 1 pts A 7 percent coupon bond has a face value of $1,000 and pays interest annually. The current yield is 6.8 percent. What is the current price of this bond?
$1,104.00
$978.41
$971.43
$1,068.00
$1,029.41
Question 3: 1 pts A 7.5 percent coupon bond is currently quoted at 89.3 and has a face value of $1,000. What is the amount of each semi-annual coupon payment if you own three (3) of these bonds?
$100.46
$200.93
$112.50
$75.00
$56.25
Question 4: 1 pts A European put option grants the holder the right to: buy the underlying asset at the exercise price on the expiration date. buy the underlying security at a stated price at any time up to and including the expiration date. sell the underlying security at the strike price on or before the expiration date. buy the underlying asset at or below the exercise price on or before the expiration date. sell the underlying asset at the strike price only on the expiration date. Question 5: 1 pts A call option is an agreement that: gives the buyer the right to purchase an asset at some point in the future. grants the seller the right to buy a security at a predetermined price. grants the seller the right, but not the obligation, to sell an asset. obligates both the buyer and seller to a future transaction. presets a price but not a time period. Question 6: 1 pts A contract that grants its buyer the right, but not the obligation, to sell an asset at a specified price is called a: call option. futures contract. primary contract. put option. preset contract. Question 7: 1 pts A financial asset that represents a claim on another financial asset is classified as a _____ asset. optioned derivative secondary primary contracted Question 8: 1 pts A fixed-income security is defined
7.61 percent
7.89 percent
7.82 percent
7.75 percent
7.99 percent Question 2: 1 pts A 7 percent coupon bond has a face value of $1,000 and pays interest annually. The current yield is 6.8 percent. What is the current price of this bond?
$1,104.00
$978.41
$971.43
$1,068.00
$1,029.41
Question 3: 1 pts A 7.5 percent coupon bond is currently quoted at 89.3 and has a face value of $1,000. What is the amount of each semi-annual coupon payment if you own three (3) of these bonds?
$100.46
$200.93
$112.50
$75.00
$56.25
Question 4: 1 pts A European put option grants the holder the right to: buy the underlying asset at the exercise price on the expiration date. buy the underlying security at a stated price at any time up to and including the expiration date. sell the underlying security at the strike price on or before the expiration date. buy the underlying asset at or below the exercise price on or before the expiration date. sell the underlying asset at the strike price only on the expiration date. Question 5: 1 pts A call option is an agreement that: gives the buyer the right to purchase an asset at some point in the future. grants the seller the right to buy a security at a predetermined price. grants the seller the right, but not the obligation, to sell an asset. obligates both the buyer and seller to a future transaction. presets a price but not a time period. Question 6: 1 pts A contract that grants its buyer the right, but not the obligation, to sell an asset at a specified price is called a: call option. futures contract. primary contract. put option. preset contract. Question 7: 1 pts A financial asset that represents a claim on another financial asset is classified as a _____ asset. optioned derivative secondary primary contracted Question 8: 1 pts A fixed-income security is defined