Sample Questions For Mini Test Template printable pdf download

Sample Questions For Mini Test Template

Name: ________________________ Class: ___________________ Date: __________

ID: A

Sample Questions for Mini-Test 3

Multiple Choice

Identify the letter of the choice that best completes the statement or answers the question.

____

1. A Treasury bond has an 8 percent annual coupon and a yield to maturity equal to 7.5 percent. Which of the

following statements is most correct?

The bond has a current yield greater than 8 percent.

The bond sells at a price above par.

If the yield to maturity remains constant, the price of the bond is expected to fall over

time.

Statements b and c are correct.

All of the statements above are correct.

____

2. Consider a $1,000 par value bond with a 7 percent annual coupon. The bond pays interest annually. There are

9 years remaining until maturity. What is the current yield on the bond assuming that the required return on the

bond is 10 percent?

10.00%

8.46%

7.00%

8.52%

8.37%

____

3. Which of the following statements is most correct?

If a market is weak-form efficient, this means that prices rapidly reflect all available public

information.

If a market is weak-form efficient, this means that you can expect to beat the market by

using technical analysis that relies on the charting of past prices.

If a market is strong-form efficient, this means that all stocks should have the same

expected return.

All of the statements above are correct.

None of the statements above is correct.

Sample Questions For Mini Test Template