This is a multiple choice quiz for FIN/534. I have posted just the correct answers
Quiz 3: Chapters 4 and 5
Question 1
Which of the following statements is CORRECT?
Question 2
Which of the following statements is CORRECT?
Question 3
You are considering two equally risky annuities, each of which pays $5,000 per year for 10 years. Investment ORD is an ordinary (or deferred) annuity, while Investment DUE is an annuity due. Which of the following statements is CORRECT?
Question 4
Which of the following statements regarding a 30-year monthly payment amortized mortgage with a nominal interest rate of 10% is CORRECT?
Question 5
Which of the following statements regarding a 30-year monthly payment amortized mortgage with a nominal interest rate of 10% is CORRECT?
Question 6
A $150,000 loan is to be amortized over 7 years, with annual end-of-year payments. Which of these statements is CORRECT?
Question 7
You are considering two equally risky annuities, each of which pays $5,000 per year for 10 years. Investment ORD is an ordinary (or deferred) annuity, while Investment DUE is an annuity due. Which of the following statements is CORRECT?
Question 8
Which of the following bank accounts has the highest effective annual return?
Question 9
Your bank account pays an 8% nominal rate of interest. The interest is compounded quarterly. Which of the following statements is CORRECT?
Question 10
Which of the following statements is CORRECT?
Question 11
Which of the following bank accounts has the lowest effective annual return?
Question 12
Your bank account pays a 6% nominal rate of interest. The interest is compounded quarterly. Which of the following statements is CORRECT?
Question 13
Which of the following statements is CORRECT?
Question 14
Which of the following statements is CORRECT, assuming positive interest rates and holding other things constant?
Question 15
You plan to invest some money in a bank account. Which of the following banks provides you with the highest effective rate of interest?
Question 16
Which of the following statements is CORRECT?
Question 17
Which of the following statements is CORRECT?
Question 18
Assume that interest rates on 20-year Treasury and corpo