Question
1.) A bond's yield to maturity is 5.64%. On 12/31/2018, the CPI was 205.5. On 12/31/2019, the CPI was 210.2. What was the real rate
1.) A bond's yield to maturity is 5.64%. On 12/31/2018, the CPI was 205.5. On 12/31/2019, the CPI was 210.2. What was the real rate of interest on this bond?
A. 3.28%
B. 4.11%
C. 3.97%
D. 2.55%
2.) The APR on a mortgage is 7.77%, compounded daily. What is the effective annual rate?
A. 8.66%
B. 7.95%
C. 8.08%
D. 9.11%
3.) The nominal interest rate on a bond is 4.34%, compounding monthly What is the effective annual yield on this bond?
A. 4.50%
B. 4.22%
C. 4.11%
D. 4.43%
4.) Calculate the geometric average return over this four-year period?
Year | Return |
2010 | 5% |
2011 | 10% |
2012 | 15% |
2013 | 20% |
A. 12.36%
B. 10.11%
C. 11.99%
D. 13.83%
8.) The monthly return volatility of a stock is 0.0528. What is the annual return volatility of that stock?
A. 0.0829
B. 0.2511
C. 0.2829
D. 0.1829
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