If you invest your money abroad;

a.

You will wish that the exchange rate does not change

b.

You will wish that the foreign currency depreciates

c.

You will wish that the home currency appreciates

d.

No option is correct

e.

You will wish that the foreign currency appreciates

question 2

If a bond is relatively more prone to default than another;

a.

It will sell for a lesser price than its safer counterpart

b.

It will offer a better interest rate than its safer counterpart

c.

It will carry a lower credit rating than its safer counterpart

d.

It will attract a default premium

e.

All options are correct

question 3

If the industry PE ratio for the industry is 16, what is the current stock price for a firm with earnings for $1.13 / share?

a.

$14.16

b.

$18.01

c.

$8.18

d.

$18.08

e.

$1.81

question 4

Choose the correct statement from the options given below:

a.

Investors generally prefer shorter term investments and require a liquidity premium for investments with longer term

b.

Liquidity risk means keeping too much idle cash without letting it grow

c.

A 1-year interest rate 5 years from now is a long term rate

d.

Interest rate risk rises as we come closer to maturity

e.

Market segmentation theory explains only "fact 3" of the term structure because it assumes bonds of different maturities to be perfect substitutes of each other

question 5

A 9% monthly coupon bond sells for $1,005. It has 7 years left to mature. Its YTM is:

a.

1.48% approximately

b.

8.9 % approximately

c.

7.42% approximately

d.

9.8% approximately

e.

0.742% approximately

PLEASE HELP ASAP