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Friday, December 25, 2009

MGT411 Solved MCQ1 from Quiz # 1 (chapters 1-15)



MGT411 Solved MCQ1 from Quiz #1


Solved by vuZs Solution Team



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Question # 1 of 20
Bonds without maturity dates are which of the followings?
Select correct option:

Zero coupon bonds
Coupon securities
Consols
Preferred Bonds

Question # 4 of 20 ( Start time: 08:02:08 PM )
Total Marks: 1
Which of the following represents the fisher's equation?
Select correct option:

Nominal interest rate = real interest rate + inflation
Nominal interest rate + inflation = real interest rate
Nominal interest rate = real interest rate - inflation
Nominal interest rate = real interest rate / inflation

Question # 5 of 20 ( Start time: 08:03:08 PM )
Total Marks: 1
The return on holding a bond till its maturity is called:
Select correct option:

Coupon rate
Yield to maturity
Current yield
Internal rate of return

Question # 6 of 20 ( Start time: 08:03:27 PM )
Total Marks: 1
Wider the range of outcome wider will be the ___________.
Select correct option:

Risk
Profit
Probability
Lose



Question # 7 of 20 ( Start time: 08:04:42 PM )
Total Marks: 1
The interest rate that is involved in _____________ calculation is referred to as discount rate
Select correct option:

Present value
Future value
Intrinsic value
Discount value

Question # 8 of 20 ( Start time: 08:06:05 PM )
Total Marks: 1
Bonds that are issued by Government are called _________.
Select correct option:

Government bond
Treasury bond
Corporate bond
Callable Bonds

Question # 13 of 20 ( Start time: 08:13:26 PM )
Total Marks: 1
If a bond sells at a premium, where price exceeds face value, then we would expect to see:
Select correct option:

Market interest rate the same as the coupon rate
Market interest rates above the coupon rate
Market interest rates below the coupon rate
All of the given options





Question # 14 of 20 ( Start time: 08:14:49 PM )
Total Marks: 1
With direct finance we mean which of the following?
Select correct option:

Individuals (or firms) borrow directly from the savers
Individuals (or firms) borrow directly from banks.
Individuals deposit savings directly in banks.
Firms deposit savings directly in banks.

Question # 15 of 20 ( Start time: 08:16:14 PM )
Total Marks: 1
Investors will hold higher compensation for the __________ investment.
Select correct option:

More risky
Less risky
Fixed return
Less dividend

Question # 16 of 20 ( Start time: 08:17:16 PM )
Total Marks: 1
Which of the following best expresses the proceeds a lender receives from a simple loan?
Select correct option:

PV(1 + i)
FV/i
PV + i
PV/i

Question # 17 of 20 ( Start time: 08:18:11 PM )
Total Marks: 1
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A financial instrument in which a borrower obtains resources from a lender immediately in exchange for a promised set of payments in the future is called as ___________.
Select correct option:

Bond
Bank Loan
Home Mortgage
Futures Contract

Question # 18 of 20 ( Start time: 08:19:18 PM )
Total Marks: 1
According to the rule of 72 for reasonable rates of return, the time it takes to __________ the money will be t =72/i%
Select correct option:

Doubles
Triples
halves
3/4

Question # 19 of 20 ( Start time: 08:19:37 PM )
Total Marks: 1
The return on the bond is equal to which of the following?
Select correct option:

Coupon rate + rate of capital gains
Current yield + rate of capital gains
Coupon rate - rate of capital gains
Current yield - rate of capital gains

Question # 20 of 20 ( Start time: 08:21:06 PM )
Total Marks: 1
A loan that is used to purchase the real estate is known as:
Select correct option:

Real estate loan
Home mortgages
Fixed payment loan
Home loan



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