Question 7 1 poin You invest $1,000 in an account paying 5% simple interest. You do not add nor withdraw any funds from this account. Every year, your account balance will: Increase at an increasing rate. a. O Increase at a constant rate. Ob. Remain constant. Oc. Increase at a decreasing rate. d. Increase by a constant amount. e. Question 8 5 points Save Answer ABC Co. issued 14-year bonds a year ago at a coupon rate of 7.0%. The bonds make semiannual payments. If the YTM on these bonds is 5.3%, what is the current bond price? (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.) Question 14 The price a dealer is willing to accept for selling a security to an investor is called the: Equilibrium price. a. Bid price. b. Ask price. C. d. Auction price. Bid-ask spread. e. Question 24 Which of the following statements is true? Since inventory is not as liquid as the other current assets it is excluded in calculation of the quick ratio. a. A current ratio of greater than one indicates net working capital is negative. b. C. In firms with inventory the quick ratio will always exceed the current ratio. The smaller the current ratio the more liquid the firm. d. A current ratio can be less than zero. e. Question 25 In words, what does an equity multiplier of 2 mean? Each dollar in assets the firm owns is supported by $2 in equity. a. Ob. Each dollar in assets the firm owns is supported by $2 in debt. Each dollar in equity the firm has supports $2 in assets. C. Each dollar in equity the firm has supports fifty cents in assets. Each dollar in assets the firm owns is supported by $4 in equity. e. Question 26 All else the same, which of the following occurs when a firm buys inventory with cash? The quick ratio declines but the current ratio remains unchanged. a. O b. The current ratio goes down if it was lower than one before the change. Oc. The current ratio goes down if it was greater than one before the change. The quick ratio goes up if it was greater than one before the change. Oe. The quick ratio goes up if it was lower than one before the change. Question 36 1 points Save Answer You just purchased some furniture from the LB Home Store. The store sold you the furniture under the agreement that you will pay $248 a month for 36 months starting one month from today. Your loan can be described as a(n): Balloon loan. a. b. Annuity due. Perpetuity. C. Discount loan. d. Oe. Ordinary annuity. Question 40 Which of the following are characteristics of a liquid asset? Provide high yields. a. O Include the firm's shares and bonds. b. O Are highly specialized equipment. C. Can be converted into cash quickly, with little or no loss in value, and generally earn low returns. Oe. There is a significant loss in value if sold