You intend to buy an oven and finance it with a loan that requires payments of $60
Fantastic news! We've Found the answer you've been seeking!
Question:
You intend to buy an oven and finance it with a loan that requires payments of $60 a month for the next four years. Your payments are which one of the following?
A) Perpetuity |
B) Annuity |
C) Consol |
D) Lump sum |
E) Present value |
A2. The PV of an annuity decreases if there is
A) An increase in the annuity's future value. |
B) An increase in the payment amount. |
C) An increase in the time period. |
D) A decrease in the discount rate. |
E) A decrease in the annuity payment. |
B4. The price of a $1,000 face value bond is 99.60. The bond matures in 5.2 years and pays semiannual payments of 22.30. What is the coupon rate?
A) 2.72% |
B) 2.85% |
C) 4.46% |
D) 2.25% |
E) 4.50% |
A5. If a bond’s coupon rate is the same as the its current yield and its yield to maturity and the market rate for the bond > 0, what must be true?
A) The clean price of the bond must equal the bond’s dirty price. |
B) The bond must be a zero coupon bond and mature in exactly one year. |
C) The market price must exceed the par value by the value of one year’s interest. |
D) The bond must be priced at par. |
E) There is no condition under which this can occur. |
Related Book For
Modern Advanced Accounting in Canada
ISBN: 978-1259087554
7th edition
Authors: Hilton Murray, Herauf Darrell
Posted Date: