31. With _____ coupon rate, a bonds price sensitivity tends to increase, ceteris paribus. With _____ maturity, a bonds price sensitivity tends to increase, ceteris paribus.

lower; longer

higher; shorter

lower; shorter

higher; longer

zero; no

32. Suppose that investors have not been able to earn excess returns using newly released announcements about the firms. Based on this statement only, which of the following must be correct?

Markets are at least weak-form and semi-strong-form efficient.

Markets are semi-strong-form efficient, but not weak-form efficient.

Markets are semi-strong-form efficient, but not weak-form efficient.

Markets are definitely strong-form efficient.

Markets are weak-form efficient, but not semi-strong-form efficient.

33. When a countrys currency depreciates relative to other currencies, domestic goods become ______ for ______ buyers.

more expensive; domestic

absolutely free; all

more expensive; foreign

cheaper; domestic

cheaper; foreign

34. What is the geometric average of the returns during Period 1 through Period 6?

0.0941

0.1302

0.1251

0.1152

0.1080

35. You have $0 in your bank account today and have decided to start depositing every month for your after-retirement life. You just turned 30 years old and would like to able to withdraw $20,000 at the beginning of each month for 20 years after your 60th birthday. How much will you need to deposit into his account at the end of each month, starting one month from today and ending on his 60th birthday? You bank account earns 12 percent annual interest, compounding monthly, both before and after his retirement.

$423.51

$524.91

$285.27

$336.55

$556.33

Period Actual return 0.05 0.08 0.12 0.16 0.28 0.02