Question 101
Which of these statements about central bank policy in an environment of global financial markets is most accurate?
A) In an environment where consumers and businesses base their decisions largely on long-term interest rates, the central bank must bring long-term rates under its direct control in order to influence financial markets and the economy. B) By communicating a credible and transparent monetary policy to the financial markets, a central bank can bypass the private banking system as a means of influencing the economy. C) Because financial markets are subject to fads and bubbles, often overreact, and exhibit herding behavior, central banks should not look to them for information when making policy decisions. D) To minimize instability in the financial markets, the central bank should communicate its policy intentions clearly so the markets will anticipate how the central bank will respond to threats to price stability. Question 102
Which of the following statements regarding sovereign debt is least accurate?
A) Sovereign debt denominated in a foreign currency may have a different rating than sovereign debt denominated in the home currency. B) Sovereign debt must be issued in a country’s own bond market. C) U.S. Treasury securities are sovereign debt of the U.S. government and are considered free of default risk. D) Bonds issued by the government of any country are sovereign debt. Question 103
Four years ago, at the advice of J.T. Lindseth, her financial planner, T.J. Ali paid $906.50 to purchase a $1,000 face value, 5.7%, semiannual coupon bond with four years to maturity priced to yield 8.50%. Now the bond has matured, and Lindseth calls Ali and informs her that he had reinvested the coupons at an annual rate of 10.0%. Given this return on coupon reinvestment, Ali's realized rate of return on the bond investment is closest to:
A) 8.65%. B) 8.50%. C) 10.00%. D) 8.35%. Question 104
The price value of a basis point for a 7% coupon, semiannual pay, 10-year bond with a $1,000 par value, currently trading at par, is closest to:
A) $1.42. B) $0.71. C) $67.10. D) $33.55. Question 105 Randy Harris is contemplating whether to add a bond to his portfolio. It is a semiannual, 6.5% bond with 7 years to maturity. He is concerned about the change in value due to interest rate fluctuations and would like to know the bond’s value given various scenarios. At a yield to maturity of 7.5% or 5.0%, the bond’s fair value is closest to: 7.5% 5.0% A) 946.30 1,087.68 B) 1,032.67 959.43 C) 974.03 1,052.36 D) 1,046.98 982.79
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发表于 2008-5-26 12:23
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