5 What is the real rate of return on a bond with an annual coupon rate of 8% gen an annual inflation rate of 4%? A) 12% B) 4% C)6% D)2% 6) Which of the following is the correct formula for calculating simple interest coupon? A) Interest coupon B) Interest coupon Principal Rate of interest C) Interest coupon = Principal (Time + Rate of interest) D) Interest coupon Principal x (100 + Rate of interest) Principal (Time + Present Value) 7) The three steps in determining a stock's intrinsic value are I. estimating the stock's future cash flows. Il. estimating the risk associated with future cash flows. IlI. careful analysis of pattems in the stock's recent price history. IV. estimating an appropriate discount rate to apply to future cash flows. A) IlI and IV only B) I, Il and IV only C) I, Ill and IV only D) None 8) Top-down security analysis A) starts with the fundamental analysis of a firm. B) includes economic, industry, and fundamental analysis. C) concentrates on the competency of the senior management of a firm. D) centers on the past performance of a firm. 9) Which stage of an industry's growth cycle offers the greatest opportunity for an investor who is seeking capital gains? A) initial development B) mature growth C)stability or decline D) rapid expansion