货币金融学(全英)chapter 4习题2.pptVIP

True or false 1. a discount bond is bought at a price below its face value and the face value is repaid at the maturity date. 2. coupon bond: if p lower than F, yield to maturity lower than coupon rate. 3. we can calculate the yield to maturity if we have known coupon rate and price of bond. 4.current yield is the most accurate index of interest rate, when economist talk about interest rate, they refer to current yield. 5. if interest rate raise from 4%to 5%, the bond holder will be benefit. 6. if all kinds of bond’s interest rate decrease from8% to 6% in one year’s time, you prefer bonds with longer maturities. 7.compared to the situation in which interest rate is 15% and expected inflation rate is 14%, companies are more willing to borrow funds in the situation in which price is stable and interest rate is 2%. 8.compared to 1-year government bond which yield to maturity is 9.9%, you are more willing to hold 1-year government bond which discount yield is 10%. Choose the best answer 1. the present value of security that interest payment is $52.5 next year and $110.25 the second year, interest rate is 5% A $162.5 B $50 C $100 D $150 d 2.The concept of ________ is based on the common-sense notion that a dollar paid to you in the future is less valuable to you than a dollar today. A) present value B) future value C) interest D) deflation a 3.With an interest rate of 6 percent, the present value of $100 next year is approximately A) $106. B) $100. C) $94. D) $92. c 4.The present value of an expected future payment ________ as the interest rate increases. A) falls B) rises C) is constant D) is unaffected Answer: A 5.If a security pays $55 in one year and $133 in three years, its present value is $150 if the interest rate is A) 5 percent. B) 10 percent. C) 12.5 percent. D) 15 percent. Answer: B 6.An increase in the time to the promised future payment ________ the present value of the payment. A) decreases B) increases C)