The 5-year Treasury bond is currently yielding 5.25%, The coupon at issuance was 6.00%. Is the bond trading at a discount, a premium, or at par?

	A.	Par
	B.	Discount
	C.	Premium (Hint: this is the correct answer)
	D.	Cannot be determined from the information given

If you wanted to receive $300 in seven years, the amount you would have to invest today, assuming a rate of return of 10%, is closest to:

	A.	$50
	B.	$75
	C.	$100
	D.	$150

What is the value of a stock today (assume a 15% discount rate) if it is expected to pay an annual dividend of $3 with no future growth.

	A.	$10
	B.	$20
	C.	$45
	D.	$31.50

In the above example, what would happen to the value of the stock if the dividend was expected to increase annually?

	A.	It would decrease
	B.	It would increase
	C.	It would remain the same because the value of the stock is independent of the dividend.
	D.	Cannot be determined from the information given.

Based on the following table, determined which statement is the most accurate (Hint: you should first calculate dividend yield and P/E ratio for each):

	Stock ABC	Stock XYZ
Stock Price	$100	$45
Dividend	$2	$1.50
Earnings	$6.67	$1.12

	A.	ABC pays a higher dividend, but is relatively expensive based on its Price/Earnings ratio.
	B.	ABC has a higher Dividend Yield, but is relatively expensive based on its Price/Earnings ratio.
	C.	XYZ has a higher Dividend Yield, but is relatively expensive based on its Price/Earnings ratio.
	D.	XYZ pays a lower dividend, but is relatively cheap based on it Price/Earnings ratio.