01-05章练习题.docVIP

Chapter01 1.A municipal bond carries a coupon of 63?4% and is trading at par; to a taxpayer in a 34% tax bracket, this bond would provide a taxable equivalent yield of: a. 4.5% b. 10.2% c. 13.4% d. 19.9% 2. Consider the three stocks in the following table. Pt represents price at time t, and Qt represents shares outstanding at time t. Stock C splits two for one in the last period. calculate the return rate of market-value-weighted index of the three stocks at T =1. Chapter 02—03 1. Suppose that you sell short 100 shares of IBX, now selling at $70 per share. a. What is your maximum possible loss? b. What happens to the maximum loss if you simultaneously place a stop-buy order at $78 ? 2. Dée Trader opens a brokerage account and purchases 300 shares of Internet Dreams at $40 per share. She borrows $4,000 from her broker to help pay for the purchase. The interest rate on the loan is 8%. a. What is the margin in Dée’s account when she first purchases the stock? b. If the price falls to $30 per share by the end of the year, what is the remaining margin in her account? If the maintenance margin requirement is 30%, will she receive a margin call? c. What is the rate of return on her investment? 3. Old Economy Traders opened an account to short sell 1,000 shares of Internet Dreams from the previous problem. The initial margin requirement was 50%. (The margin account pays no interest.) A year later, the price of Internet Dreams has risen from $40 to $50, and the stock has paid a dividend of $2 per share. a. What is the remaining margin in the account? b. If the maintenance margin requirement is 30%, will they receive a margin call? c. What is the rate of return on the investment? 4. Consider the following limit-order book of a specialist. The last trade in the stock took place at a price of $50. If a market-buy order for 100 shares comes in, at what price will it be filled? b. At what price would the next market-buy order be filled? c. If you were the speci