Which of the following $1,000 face-value securities has the highest yield to maturity? A) a 5 percent coupon bond with a price of $600 B) a 5 percent coupon bond with a price of $800 C) a 5 percent coupon bond with a price of $1,000 D) a 5 percent coupon bond with a price […]
Date: September 10th, 2020
Monetary policy is controlled by the U.S. Congress. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
The oldest central bank, having been founded in 1694, is the A) Bank of England. B) Deutsche Bundesbank. C) Bank of Japan. D) Federal Reserve System. ANSWER A
Date: September 10th, 2020
Which of the following $5,000 face-value securities has the highest yield to maturity? A) a 6 percent coupon bond selling for $5,000 B) a 6 percent coupon bond selling for $5,500 C) a 10 percent coupon bond selling for $5,000 D) a 12 percent coupon bond selling for $4,500 ANSWER D
Date: September 10th, 2020
In the Gordon Growth Model, the growth rate is assumed to be ________ the required return on equity. A) greater than B) equal to C) less than D) proportional to ANSWER C
Date: September 10th, 2020
One of the assumptions of the Gordon Growth Model is that dividends will continue growing at ________ rate. A) an increasing B) a fast C) a constant D) an escalating ANSWER C
Date: September 10th, 2020
An increase in resources, efficiency, or technology will shift the: A) short-run aggregate supply curve rightward. B) short-run aggregate supply curve leftward. C) long-run aggregate supply curve rightward. D) long-run aggregate supply curve leftward. ANSWER C
Date: September 10th, 2020
On paper, the Bank of Canada has ________ instrument independence and ________ goal independence when compared to the Federal Reserve System. A) less; less B) less; more C) more; less D) more; more ANSWER A
Date: September 10th, 2020
You believe that a corporation’s dividends will grow 5% on average into the foreseeable future. If the company’s last dividend payment was $5 what should be the current price of the stock assuming a 12% required return? What will be an ideal response? ANSWER Use the Gordon Growth Model. $5(1 + .05 )/(.12 – […]
Date: September 10th, 2020
Inflation was a problem during the Great Depression. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
