Question 96 Using the following assumptions: - Market Price Per Share: $25
- Number of Shares Purchased: 1,000
- Holding Period: 1 year
- Ending Share Price: $22
- Initial Margin Requirement: 50%
- Maintenance margin: 25%
- Transaction and borrowing costs: $0
- The company pays no dividends
The rate of return on a margin transaction for an investor who purchases the stock, and the stock price at which the investor who shorts the stock will receive a margin call, are closest to:
Margin Transaction Return Margin Call A) -24.00% $16.67 B) -12.00% $16.67 C) -12.00% $30.00 D) -24.00% $30.00 Question 97
Simone Girau holds a callable bond and Chi Rigazio holds a putable bond. Which of the following statements about the two investors is most accurate?
A) As the yield volatility increases, the value of both Girau's bond and the underlying option increases. B) Both investors calculate the value of the bond held by adding the value of the option to the value of a similar straight bond. C) If yield volatility increases, the value of Rigazio's option will decrease. D) Girau's bond has less potential for price appreciation. Question 98 Which theory of the term structure of interest rates concludes that the shape of the yield curve is determined by the supply and demand for securities in particular maturity ranges, and what shape of the yield curve is implied by this theory? Theory Yield curve A) liquidity preference no specific shape B) market segmentation no specific shape C) liquidity preference upward sloping D) market segmentation
upward sloping Question 99
Which of the following statements about the early retirement of debt is least accurate?
A) Noncallable bonds generally cannot be retired for any reason prior to maturity. B) Sinking fund provisions require the issuer to systematically retire the issue over its life rather than at maturity. C) When bonds are redeemed under sinking fund provisions, the call price is known as the "regular redemption price." D) Non-refundable bonds prohibit a company from calling an issue financed by the proceeds of a lower cost refunding bond issue. Question 100
What data would an analyst need to calculate the implied 1-year forward rate 3 years from now?
A) The current spot rate and the spot rate four years from now. B) Spot rates for six-month intervals for two years and the 4-year spot rate. C) The implied 4-year forward rate 3 years out and the current spot rate. D) The 3-year spot rate and the 4-year spot rate.
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发表于 2008-5-26 12:20
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