part a

Which of the followings is not one of the major factors in determining the bond yield?

Liquidity risk premium

Bond dividend premium

Default risk premium

Taxability premium

part b

A return on stock investment can be divided into dividend yield and _____________.

Question 28 options:

current yield

capital gains yield

inflation return

short-term yield

part c

Find the effective annual rate (EAR) for a 8.8% APR with monthly compounding.

Question 12 options:

1)

9.72%

2)

10.16%

3)

8.95%

4)

9.16%

part d

Which of the followings about bonds is not true?

Question 16 options:

Coupon rate is the stated interest rate at which the issuer pays interest payments.

Yield-to-maturity is the rate of return earned on a bond held until maturity.

A bond is a financial instrument in which a bond issuer agrees to pay principal and interest payments to the bond holders.

Bonds holders get voting rights within the corporation.