Which of the following statements about annuity due and ordinary annuity is true? FV of annuity due
Question:
Which of the following statements about annuity due and ordinary annuity is true?
FV of annuity due = (FV of ordinary annuity) / (1+i) | ||
FV of ordinary annuity = (FV of annuity due) * (1+i) | ||
PV of ordinary annuity = (PV of annuity due) * (1+i) | ||
PV of annuity due = (PV of ordinary annuity) * (1+i)
|
In 1815, The British Government issued a consol. If we assume the consol promised to pay $25 per year in perpetuity. What would the consol be worth if the discount rate is 5%?
$100 | ||
$500 | ||
$1,000 | ||
$2,000 |
What is the beta for a market portfolio such as S&P 500 index portfolio?
Less than 1.0 | ||
Close to 1.0 | ||
Larger than 1.0 | ||
Dont know. |
A 10-year corporate bond has an annual coupon payment of 2.8%. The bond is currently selling at par ($1,000). Which of the following statement is NOT correct?
The bonds yield to maturity is 2.8%. | ||
The bonds current yield is 2.8%. | ||
If the bonds yield to maturity remains constant, the bonds price will remain at par. | ||
The bonds capital gain yield is 2.8%. |