1

Preferred Stock has preference/priority when it comes to preferred stock vs common stock shareholder's .

		Being allowed to purchase newly issued stock in the company.
		Receiving share buyback offers.
		Voting for the members of the companys Board of Directors. .
		Dividend Payments.
		Reinvesting any dividends received into the companys common stock.

2

As a financial analyst, you made the following forecasts. The inflation will be increasing 1.75% this year and 3.5% during the following two years. Assume that the maturity risk premium is zero. What is the yield on 2-year Treasury securities if the real risk free rate is 2.75%?

	A.	2.45%
	B.	2.98%
	C.	3.12%
	D.	5.38%

3

Viviano Corporation has a 9 percent, semiannual coupon bond outstanding with a current market price of $1,057.11. The bond has a par value of $1,000 and a yield to maturity of 7.74 percent. How many years is it until this bond matures?

	A.	5.69 years
	B.	11.37 years
	C.	12.53 years
	D.	25.05 years

4

What is the effective rate of a 5-year, 10% quarterly paying instrument?

	A.	7.17
	B.	8.84
	C.	9.18
	D.	10.38