1) Zyra, an investor, invested in a 5-year bond with 100 shares at Php980 par value that will be paid in equal annual installment and with a coupon rate of 12% that is paid annually. The effective rate of the bond is 9%. Which statement is false? (Use 8 decimal places for the present value factor)

a. The carrying value of the bond at the investment date is Php105,254.28

b. The carrying value of the bond at the date of maturity is 0

c. The carrying value of the bond at the investment date is higher than the face value amounting to Php7,254.28

d. The carrying value of the interest portion at the investment date is Php76,237.16

2) Statement 1: Interest rate has a direct impact on Equilibrium Interest Rate / Statement 2: Economic Conditions has a direct impact on Equilibrium Interest Rate.

a. Statement 1 is true while Statement 2 is false

b. Statement 1 is false while Statement 2 is true

c. Both statements are true

d. Both statements are false

3) Jhin have a sum amount of money in a foreign currency denomination. What kind market should Jhin visit to have the foreign currency denominated money exchange into local currency denomination?

a. Derivative Markets

b. Capital Markets

c. Money Markets

d. Foreign Exchange Markets

4) On January 1, 20x2, Freljord company has an opportunity to invest in an investment that will earn Php5,000 every beginning of the year with an interest rate of 10% annually for 5 years. How much is the value of the investment on January 1, 20x2? (Round your factor in 3 decimal places)

a. Php18,955

b. Php4,545

c. Php20,850

d. Php3,105

5) On January 1, 20x2, Demacia company plan to invest cash outlay of Php40,000 upon entering the contract that will earn Php6,000 semi-annually upon investing for 5 years. The prevailing annual interest rate for this kind of investment is 12%. Will the company be wise to continue the investment? (Round your factor in 3 decimal places)

a. Yes, Because the net present value of the investment is Php6,812

b. Yes, Because the net present value of the investment is Php4,160

c. No, Because the net present value of the investment is (Php18,370)

d. No, Because the net present value of the investment is (Php15,778)