Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help me answer the questions Question 11. Corporations often have no or little interest in the secondary 5 points market, because they receive no

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

please help me answer the questions

Question 11. Corporations often have no or little interest in the secondary 5 points market, because they receive no actual benefits from this market O True O False 5 points Question 12. The centralized market place where agents can trade securities efficiently and quickly is classified as Secondary Market O Central Market O Agent Market O Securities Exchange O Other: Question 13. Which of these instruments belong to the capital market? (sellect ALL that apply) 5 points Common Shares Preferred Shares UUS Treasury Notes Repurchase Agreements Student Loans Student Loan Asset-Backed Securities (SLABS) Car Loans Money Orders Question 14. Which of the following are true for Financial Intermediaries? 5 points (select ALL that apply) Financial intermediaries involve in the process of indirect finance Financial intermediaries exist because there are substantial information and transactions costs in the economy Financial intermediaries help reduce transaction cost Question 15. Which of the following is not a goal of financial regulation? 5 points Providing information to investors O O O Encouraging home ownership Ensuring that investors never suffer losses Ensuring the soundness of the financial system Ensuring the soundness of the financial system Question 16. A potential borrower usually has better information about the 5 points potential returns and risk of the investment projects he plans to undertake than does the lender. This inequality of information is called * Moral hazard Adverse selection Asymmetric information Reverse causation Other: 5 points Question 17. (Homework Chapter 3) A $1000 zero-coupon bond with five years to maturity if the yield to maturity is 6%. The bond's present value is the closest to? * 745 O O O 746 747 748 O O Other: Question 18. A financial asset has 3 years left to maturity. It is expected to 5 points give an income of $1,100 after 1 year from now, and 10% increase in income each year until maturity. The current market price of the asset is $2,500 (the price you will have to pay to own the asset now). If your Acn_fR5LS6ybf6y67pBTdOZgouxhyx2Sa3 Mw/viewform Question 18. A financial asset has 3 years left to maturity. It is expected to 5 points give an income of $1,100 after 1 year from now, and 10% increase in income each year until maturity. The current market price of the asset is $2,500 (the price you will have to pay to own the asset now). If your minimum required annual rate of return is 10% and you only care about making profit, would you consider this financial asset as a possible investment option? * Yes O No O Not enough information to answer Question 19. A coupon bond pays the owner of the bond 5 points the same amount every month until maturity date. the face value of the bond plus an interest payment once the maturity date has been reached the face value at the maturity date. O a fixed-interest payment every period and repays the face value at the maturity date. O O O O O none of the above. O Other: 5 points Question 20. Based on the historical weekly adjusted close prices of AAPL, MSFT, and NFLX from Mar 31, 2020 to Jul 10, 2020, if your strategy is to choose one stock that has the best historical weekly return with standard deviation of no more than 3%, which of these stocks would you choose to invest in? * AAPL MSFT MSFT NFLX None of them Other: Question 21 (Bonus Question). If the market interest rate rises from 5 to 6 percent over the course of the year, which bond would you prefer to hold? A bond with one year to maturity A bond with ten years to maturity A bond with five years to maturity O A bond with twenty years to maturity Question 22 (Bonus Question). In May 2000, the U.S. Treasury issued 30-year bonds with a coupon rate of 6.25%, paid semiannually. A bond with a face value of $1,000 pays $31.25 (1,000 0.0625/2) every six months for the next 30 years; in May 2030, the bond also repays the principal amount, $1,000.Which of the following is true about the present value of the bond if, immediately after issue in May 2000, the 30-year interest rate increases to 8.2%? It is over $1,000 It is under $800 It's over 9000 It is between $800 and $1000 to the address your vided

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Management For Decision Makers

Authors: Peter Atrill

9th Edition

1292311436, 978-1292311432

More Books

Students also viewed these Finance questions