6. An initial public offering: A. does not always raise additional equity funds for the business. B. is the initial sale of shares to the public. C. is also known as a 'float'. D. is the process by which shares become listed on the SAX. E. all of these. 7. In relation to a housing loan of $250,000 for 20 years at 9% per annum compounding monthly with monthly repayments: A. the monthly repayment is $2,249.31. B. the first repayment includes $1,875.00 in interest. C. the amount of interest payable will fall each month. D. the amount of the loan outstanding (owing) will fall at an increasing rate as the loan progresses. E. all of these. 8. ABS Company bonds have a coupon rate of 12%, paid semi-annually, a face value of $1,000, and mature at the end of 20 years. What is the current price of this bond if its yield to maturity is 10%? A. $850 B. $1,172 C. $1,170 D. $1,030 E. None of the above. 9. The role of the primary market is to: A. provide investors with liquidity. B. discover the price of securities. C. raise funds for issuers. D. reflect general price movements through benchmark indices. E. all of these. 10. The Fisher effect is the finding that: A. changes in real bond yields are associated with changes in the inflation rate. B. changes in real bond yields are associated with changes in nominal bond yields. C. changes in nominal bond yields are associated with changes in the expected inflation rate. D. changes in nominal bond yields are associated with changes in real bond yields. E. yields and inflation are independent of one another