1.Assuming a current discount rate of 9% and semi-annual coupon payment , what is Present Value of the first coupon of an 8% five year bond with a $100 par value?

A. $-7.34

B. $3.85

C. $3.83

D. $2.58

2.What type of Preferred share gives the shareholders certain rights to share in corporate earning over and above their specified dividend rate?

A. Retractable preferred

B. Structured preferred

C. Variable rate preferred

D. Participating preferred

3.Yield to maturity on a bond means:

A. The total dollar's return for the bond

B. The price on a stripped coupon zero coupon bonds

C. Yield on actual bond price using existing market rates

D. None of the above

4.Many companies advertise that they will be paying an amount in dividends in the future via newspapers, online, etc. once those dividends are paid, what will happen to the stock price?

A. The stock price will depend only on demand and supply in the market place

B. The stock price will decrease by the same amount of dividend payment per share

C. The stock price will be unchanged on the payment date

D. The stock price will increase by the same amount of dividend payment per share