QUESTION 1 Larry can borrow $1,000 from Mary. She wants him to pay her $1,290 in 3 years. About what would the YTM be for the loan? 10.09% 9.389 8.8696 7.7296 7.139696 QUESTION 2 The _____ interest rate more accurately reflects the total cost of borrowing, nominal spot O market Oreal forward QUESTION 3 Bonds with relatively low risk of default are called zero coupon bonds. junk bonds. investment grade bonds. QUESTION 4 _are major disruptions in financial markets that are characterized by sharp declines in asset prices and the failures of many financial and non financial firms. Asset transformations Risk restructuring Financial crises Financial intermediations Auctioneers QUESTION 5 Money is defined as O anything that is generally accepted in payment for goods and services or in the repayment of debt. a banking transaction. a riskless repository of spending power