No 5.

A series of cash flows of equal amount, equally spaced in time is called an):

A present value factor. B annuity. C effective annual rate. D perpetuity. E consol.

No 4

Secondary markets: A allow borrowers to raise long-term funds. B allow borrowers to raise short-term funds. C facilitate capital-raising in the primary market. D do not raise new funds but offer liquidity.

No 3.

Which one of the following transactions occurred in the primary market? A Maria gave 100 shares of Telstra stock to her best friend. B Gene purchased 300 shares of Telstra stock from Ted. C Telstra Inc. sold 1000 shares of newly issued stock to Mike. D The president of Trecco Inc. sold 500 shares of Trecco stock to her son.