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I need a tutor who is expert on Finance to answer my 25 multiple choice questions assignment!

1) If a bond sells for less than its par value, then... a) Market interest rates must have gone up since the bond was issued. b) Market interest rates must have gone down since the bond was issued. c) The discount rate for the bond must be lower than the coupon rate. d) The discount rate for the bond must be higher than the coupon rate. 2) If a share of preferred stock has a conversion feature, then the preferred stock can be converted into... a) A corporate bond. b) Common stock. c) Cash. d) A stock option. 3) According to the capital asset pricing model (CAPM), the appropriate measure of risk for a share of stock is its... a) Beta. b) Standard deviation of its returns. c) Variance of its returns. d) (Can't say for sure. It depends on whether or not the stock is part of a portfolio.) 4) Negative beta stocks... a) Are (mathematically) impossible. b) Offer very high rates of return (above the market rate of return) due to their riskiness. c) Imply that the future dividend stream is negative. d) Offer very low rates of return (below the risk-free rate) due to their value as a hedging instrument. 5) When discounting a future risky cash flow stream, the E[ ] that appears in the denominator of each term, in front of the cash flow, stands for... a) Exponent. b) Earnings. c) Equity. d) Expectation. 6) The real interest rate on a bond is equal to the nominal rate... a) Less expected inflation. b) Plus an adjustment for risk. c) Discounted by the number of years in the future that each coupon payment is received. d) (None of the above. Nominal and real rates are the same things.) Page 1 of 4 Pages 7) In the USA at least, the central bank's primary control over market interest rates is through... a) Buying and selling of government bonds in the secondary market, in what are known as open market operations. b) Bank regulations which set upper and lower limits on the borrowing rate. c) Issuing central bank bonds with a particular coupon rate. d) How much currency it allows to circulate in the economy. 8) According to the capital asset pricing model (CAPM), a stock's expected return can be calculated in a mathematical relationship known as the... a) Capital market line (CML). b) Mean-variance (MV) efficient set. c) Portfolio pricing line (PPL). d) Security market line (SML). 9) The liquidity preference theory of interest rates shares features of both the ___(i)_____ and ___(ii)____ of interest rates. a) (i) Expectations theory; (ii) monetary theory. b) (i) discount theory; (ii) liquidity preference theory. c) (i) conversion theory; (ii) near-money theory. d) (i) expectations theory; (ii) liquidity preference theory. 10) When discounting future cash flows, the length of a time period is... a) Always one year. b) Always one year from the first cash flows. c) Always one month. d) Always determined by the frequency of the cash flows. 11) Until it matures, a zero-coupon bond will ... a) Always be worth zero. b) Always sell at a discount below its par value. c) Always sell at a premium above its par value. d) Always sell at exactly its par value. 12) A yield curve shows the interest rate (or bond yield) as a function of ... a) Risk. b) (Time to) maturity. c) The coupon rate. d) The expected return of the stock market index. 13) Suppose a share of stock is currently selling for $100. Next year, it is expected that the stock's price will rise to $108, and that it will pay a $4 dividend over that period of time. The stock's expected capital gains yield is... a) $8. b) 4%. c) 8%. d) 12%. Page 2 of 4 Pages 14) In MS Excel, you can get a bond's yield to maturity by using the _____ function. a) =YTM( ). b) =YIELD( ) c) =NPV( ). d) =IRR( ). 15) Which of the following is not a large, well known bond rating agency? a) Standard & Poors. b) Dow Jones. c) Moody's. d) Fitch. 16) For fixed coupon rate bonds, interest rate risk ... a) Does not exist. b) Is greater for bonds with longer maturity. c) Only exists for businesses in danger of default/bankruptcy. d) Will cause bond prices to rise when market interest rates rise. 17) When issuing new securities, the investment bank may also act as an underwriter, meaning that it... a) Will help to find buyers of the new issue. b) Will also do the research to determine the best price of the bond. c) Will guarantee to the buyers a minimum return on investment. d) Will agree to buy any unsold part of the new issue at a firm commitment price. 18) Which of the following is not one of the major costs of undertaking an initial public offering (IPO)? a) Underpricing. b) Interest costs. c) Direct costs. d) The spread. 19) If the discount rate is r = 8%, what is the present value of $145 in year 1, $200 in year 2, and $155 in year 3, rounded to the nearest dollar? a) $500. b) $429. c) $485. d) $514. 20) Suppose a person got a loan for $28,000 to buy a car. The loan is payable in equal monthly installments (payments) over a four-year period. The interest rate is 6% per year. How much is each monthly installment, rounded to the nearest dollar? a) $1,549. b) $1,789. c) $7,088. d) $658. Page 3 of 4 Pages 21) A growing perpetuity will pay out $100 for its first payment, which will arive next year. Payments will grow by 3% per year thereafter. The market interest rate is 8%. Rounded to the nearest dollar, the present value of the perpetuity is... a) Infinity. b) $1,000. c) $2,000. d) $5,000. 22) Suppose an investor orders his stock broker to sell the stock if its price falls to, say, $50. This type of order is known as a... a) Market order. b) Stop-loss order. c) Limit order. d) Mark-to-market order. 23) What is the present value (rounded to the nearest dollar) of an annuity that pays out $1,250 each year for the next 50 years, if the first payment comes next year, and the market interest rate is 7% per year? a) $12,500. b) $17,251. c) $17,777. d) $62,500. 24) Same question as #23 above, except that the first payment doesn't come until exactly ten years from now. a) $9,383. b) $8,769. c) $17,251. d) $11,084. 25) Suppose a stock is expected to pay a dividend of $4.25 next year. Dividends are expected to grow by 15% for the following three years (until year 4), by 10% for the following two years (years 5 and 6), and then by 4% each year thereafter (forever). The market discount rate for stocks of this risk class is 8%. What is the stock's value today, rounded to the nearest dollar? a) $206. b) $155. c) $146. d) $106. Page 4 of 4 Pages