ACFI2005 ractise Exam 1.docVIP

MULTIPLE CHOICE QUESTIONS Question 1: Long-term debt can be categorised as financing that occurs in the capital markets. Capital markets involve financial transactions with which of the following term to maturity: A: over 180 days B: between 1 and 3 years C: between 3 and 12 years D: over 1 year E: Over 10 years Question 2: A company borrows $125 000 from a bank at 7.2% per annum to be amortised over 6 years. The monthly instalment is: A: $1861.11 B: $2143.15 C: $7274.21 D: $26 386.61 E: $1956.67 Question 3: If a bond investor pays $1030 for an annual coupon bond with a face value of $1000, i