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Please help me check the answer is correct? B 2.C 3.B 4.C 5.A 1. Which of the following bonds would you prefer to be buying?

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Please help me check the answer is correct?

  1. B 2.C 3.B 4.C 5.A

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1. Which of the following bonds would you prefer to be buying? A. a $5,000 face-value security with a 6 percent coupon selling for $4,000 B. a $5,000 face-value security with a 7 percent coupon selling for $4,000 C. a $5,000 face-value security with a 5 percent coupon selling for $4,200 D. a $5,000 face-value security with a 6 percent coupon selling for $4,200 2. In the market for money, an interest rate above equilibrium results in an excess money and the interest rate will A. demand for; rise B. demand for; fall C. supply of; fall D. supply of; rise 3. If the expected path of 1-year interest rates over the next five years is 3 percent, 6 percent, 3 percent, 2 percent, and 4 percent then the expectations theory predicts that today's interest rate on the four-year bond is A. 3.2 percent. B. 3.5 percent. C. 3.6 percent. D. 3.8 percent. 4. With an interest rate of 5 percent, the present value of $100 next year is approximately A. $105. B. $100. C. $95. D. $90. 5. A credit market instrument that pays the owner a fixed coupon payment every year until the maturity date and then repays the face value is called a A. coupon bond. B. simple loan. C. fixed-payment loan. D. discount bond

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