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Posted by: accountinghelp
Price Quoted by Student: $15
Posted On: 2013-07-08 01:01:50
 
Question

8 Finance mcqs

 

1.   Ellen now has $125. How much would she have after 8 years if she leaves it invested at 8.5% with annual compounding?

A) $205.83

B) $216.67

C) $228.07

D) $240.08

E) $252.08

 

2.   Last year Rocco Corporation's sales were $225 million. If sales grow at 6% per year, how large (in millions) will they be 5 years later?

A) $271.74

B) $286.05

C) $301.10

D) $316.16

E) $331.96

 

3.   How much would $1, growing at 3.5% per year, be worth after 75 years?

A) $12.54

B) $13.20

C) $13.86

D) $14.55

E) $15.28

 

4.   Suppose a State of California bond will pay $1,000 eight years from now. If the going interest rate on these 8-year bonds is 5.5%, how much is the bond worth today?

A) $651.60

B) $684.18

C) $718.39

D) $754.31

E) $792.02

 

5.   Suppose the U.S. Treasury offers to sell you a bond for $747.25. No payments will be made until the bond matures 5 years from now, at which time it will be redeemed for $1,000. What interest rate would you earn if you bought this bond at the offer price?

A)    4.37%

B)     4.86%

C)      5.40%

D)     6.00%

E)     6.60%

 

6.   The Morrissey Company's bonds mature in 7 years, have a par value of $1,000, and make an annual coupon payment of $70. The market interest rate for the bonds is 8.5%. What is the bond's price?

A)    $923.22

B)     $946.30

C)     $969.96

D)     $994.21

E)     $1,019.06

 

7.   Ezzell Enterprisesí noncallable bonds currently sell for $1,165. They have a 15-year maturity, an annual coupon of $95, and a par value of $1,000. What is their yield to maturity?

A) 6.20%

B) 6.53%

C) 6.87%

D) 7.24%

E) 7.62%

 

8.   Garvin Enterprisesí bonds currently sell for $1,150. They have a 6-year maturity, an annual coupon of $85, and a par value of $1,000. What is their current yield?

A) 7.39%

B) 7.76%

C) 8.15%

D) 8.56%

E) 8.98%


Solutions
Please see the attachment for solution 1. 
Price $15
Attachment 1: 8 Finance mcqs.xls
Solution Posted By: Accountinghelp    Posted on: 08-07-2013