A bond issued by company A has a AAA crecit ratinig, pays a $5\%$ semi$-$annual coupon $6\%$ semi$-$annual coupon, has $5.$yest mad by company $B$ has a abe credit rating. pays a bond issued by company A trading?

$($a$)5\%$ below par

$($c$)1\%$ below par

$($d$)$ Above par

$($e$)$ Cannot be determined with the information given.

In which of the following circumstances can I be confident that the NPV of an investment project will fall as the discount rate rises? Assume that all the cashflows stay unchanged as the discount rate changes.

$($a$)$ Always

$($b$)$ As long as $RRR>0$

$($c$)$ As long as $RRR>$ the risk$-$free rate

$($d$)$ As long as all future cashflows are positive

Which of the following statements are true?

The yield curve for any specific issuer is always flat

II$.$ Comments by the central bank governor may affect the government yield curve

$($a$)1$

$($b$)$ II

$($c$)$ I and II

$($d$)$ Neither

Which of the following statements are true?

I. Currency carry trades are where an investor borrows in a currency with low interest rates and lends in a currency with high interest rates

II$.$ Currency carry trades are low risk arbitrage trades

$($a$)1$

$($b$)$ II

$($c$)$ I and II

$($d$)$ Neither

According to CAPM, what return should be expected on an asset with zero beta and zero alpha?

$($a$)$ Zero

$($b$)1\%$

$($c$)$ The market return

$($d$)$ The risk$-$free rate

How could a farmer best hedge the risk of a fall in the price of corn before harvest?

$($a$)$ buy corn in the spot market

$($b$)$ sell corn in the spot market

$($c$)$ buy corn futures

$($d$)$ sell corn futures

$($e$)$ buy call options on corn

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