货币金融学chapter 4英文习题.docx

货币金融学chapter 4英文习题.docx

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货币金融学chapter4英文习题

EconomicsofMoney,Banking,andFinancialMarkets,11e,GlobalEdition（Mishkin）

Chapter4TheMeaningofInterestRates

4.1MeasuringInterestRates

1）Theconceptof________isbasedonthecommon-sensenotionthatadollarpaidtoyouinthefutureislessvaluabletoyouthanadollartoday.

A）presentvalue

B）futurevalue

C）interest

D）deflation

Answer:

A

AACSB:

ApplicationofKnowledge

2）Thepresentvalueofanexpectedfuturepayment________astheinterestrateincreases.

A）falls

B）rises

C）isconstant

D）isunaffected

Answer:

A

AACSB:

ReflectiveThinking

3）Anincreaseinthetimetothepromisedfuturepayment________thepresentvalueofthepayment.

A）decreases

B）increases

C）hasnoeffecton

D）isirrelevantto

Answer:

A

AACSB:

ReflectiveThinking

4）Withaninterestrateof6percent,thepresentvalueof$100nextyearisapproximately

A）$106.

B）$100.

C）$94.

D）$92.

Answer:

C

AACSB:

AnalyticalThinking

5）Whatisthepresentvalueof$500.00tobepaidintwoyearsiftheinterestrateis5percent?

A）$453.51

B）$500.00

C）$476.25

D）$550.00

Answer:

A

AACSB:

AnalyticalThinking

6）Ifasecuritypays$55inoneyearand$133inthreeyears,itspresentvalueis$150iftheinterestrateis

A）5percent.

B）10percent.

C）12.5percent.

D）15percent.

Answer:

B

AACSB:

AnalyticalThinking

7）Toclaimthatalotterywinnerwhoistoreceive$1millionperyearfortwentyyearshaswon$20millionignorestheprocessof

A）facevalue.

B）parvalue.

C）deflation.

D）discountingthefuture.

Answer:

D

AACSB:

AnalyticalThinking

8）Acreditmarketinstrumentthatprovidestheborrowerwithanamountoffundsthatmustberepaidatthematuritydatealongwithaninterestpaymentisknownasa

A）simpleloan.

B）fixed-paymentloan.

C）couponbond.

D）discountbond.

Answer:

A

AACSB:

ApplicationofKnowledge

9）Acreditmarketinstrumentthatrequirestheborrowertomakethesamepaymenteveryperioduntilthematuritydateisknownasa

A）simpleloan.

B）fixed-paymentloan.

C）couponbond.

D）discountbond.

Answer:

B

AACSB:

ApplicationofKnowledge

10）WhichofthefollowingareTRUEoffixedpaymentloans?

A）Theborrowerrepaysboththeprincipalandinterestatthematuritydate.

B）Installmentloansandmortgagesarefrequentlyofthefixedpaymenttype.

C）Theborrowerpaysinterestperiodicallyandtheprincipalatthematuritydate.

D）Commercialloanstobusinessesareoftenofthistype.

Answer:

B

AACSB:

ReflectiveThinking

11）Afullyamortizedloanisanothernamefor

A）asimpleloan.

B）afixed-paymentloan.

C）acommercialloan.

D）anunsecuredloan.

Answer:

B

AACSB:

ApplicationofKnowledge

12）Acreditmarketinstrumentthatpaystheownerafixedcouponpaymenteveryyearuntilthematuritydateandthenrepaysthefacevalueiscalleda

A）simpleloan.

B）fixed-paymentloan.

C）couponbond.

D）discountbond.

Answer:

C

AACSB:

ApplicationofKnowledge

13）A________paystheownerafixedcouponpaymenteveryyearuntilthematuritydate,whenthe________valueisrepaid.

A）couponbond;discount

B）discountbond;discount

C）couponbond;face

D）discountbond;face

Answer:

C

AACSB:

AnalyticalThinking

14）The________isthefinalamountthatwillbepaidtotheholderofacouponbond.

A）discountvalue

B）couponvalue

C）facevalue

D）presentvalue

Answer:

C

AACSB:

ApplicationofKnowledge

15）Whentalkingaboutacouponbond,facevalueand________meanthesamething.

A）parvalue

B）couponvalue

C）amortizedvalue

D）discountvalue

Answer:

A

AACSB:

ApplicationofKnowledge

16）Thedollaramountoftheyearlycouponpaymentexpressedasapercentageofthefacevalueofthebondiscalledthebond's

A）couponrate.

B）maturityrate.

C）facevaluerate.

D）paymentrate.

Answer:

A

AACSB:

ApplicationofKnowledge

17）The________iscalculatedbymultiplyingthecouponratetimestheparvalueofthebond.

A）presentvalue

B）facevalue

C）couponpayment

D）maturitypayment

Answer:

C

AACSB:

AnalyticalThinking

18）Ifa$1000facevaluecouponbondhasacouponrateof3.75percent,thenthecouponpaymenteveryyearis

A）$37.50.

B）$3.75.

C）$375.00.

D）$13.75

Answer:

A

AACSB:

AnalyticalThinking

19）Ifa$5,000couponbondhasacouponrateof13percent,thenthecouponpaymenteveryyearis

A）$650.

B）$1,300.

C）$130.

D）$13.

Answer:

A

AACSB:

AnalyticalThinking

20）An$8,000couponbondwitha$400couponpaymenteveryyearhasacouponrateof

A）5percent.

B）8percent.

C）10percent.

D）40percent.

Answer:

A

AACSB:

AnalyticalThinking

21）A$1000facevaluecouponbondwitha$60couponpaymenteveryyearhasacouponrateof

A）.6percent.

B）5percent.

C）6percent.

D）10percent.

Answer:

C

AACSB:

AnalyticalThinking

22）AllofthefollowingareexamplesofcouponbondsEXCEPT

A）corporatebonds.

B）U.S.Treasurybills.

C）U.S.Treasurynotes.

D）U.S.Treasurybonds.

Answer:

B

AACSB:

AnalyticalThinking

23）Abondthatisboughtatapricebelowitsfacevalueandthefacevalueisrepaidatamaturitydateiscalleda

A）simpleloan.

B）fixed-paymentloan.

C）couponbond.

D）discountbond.

Answer:

D

AACSB:

ApplicationofKnowledge

24）A________isboughtatapricebelowitsfacevalue,andthe________valueisrepaidatthematuritydate.

A）couponbond;discount

B）discountbond;discount

C）couponbond;face

D）discountbond;face

Answer:

D

AACSB:

AnalyticalThinking

25）Adiscountbond

A）paysthebondholderafixedamounteveryperiodandthefacevalueatmaturity.

B）paysthebondholderthefacevalueatmaturity.

C）paysallinterestandthefacevalueatmaturity.

D）paysthefacevalueatmaturityplusanycapitalgain.

Answer:

B

AACSB:

ReflectiveThinking

26）Examplesofdiscountbondsinclude

A）U.S.Treasurybills.

B）corporatebonds.

C）U.S.Treasurynotes.

D）municipalbonds.

Answer:

A

AACSB:

AnalyticalThinking

27）WhichofthefollowingareTRUEfordiscountbonds?

A）Adiscountbondisboughtatpar.

B）Thepurchaserreceivesthefacevalueofthebondatthematuritydate.

C）U.S.Treasurybondsandnotesareexamplesofdiscountbonds.

D）Thepurchaserreceivestheparvalueatmaturityplusanycapitalgains.

Answer:

B

AACSB:

ReflectiveThinking

28）Theinterestratethatequatesthepresentvalueofpaymentsreceivedfromadebtinstrumentwithitsvaluetodayisthe

A）simpleinterestrate.

B）currentyield.

C）yieldtomaturity.

D）realinterestrate.

Answer:

C

AACSB:

ApplicationofKnowledge

29）Economistsconsiderthe________tobethemostaccuratemeasureofinterestrates.

A）simpleinterestrate.

B）currentyield.

C）yieldtomaturity.

D）realinterestrate.

Answer:

C

AACSB:

ReflectiveThinking

30）Forsimpleloans,thesimpleinterestrateis________theyieldtomaturity.

A）greaterthan

B）lessthan

C）equalto

D）notcomparableto

Answer:

C

AACSB:

ApplicationofKnowledge

31）Iftheamountpayableintwoyearsis$2420forasimpleloanat10percentinterest,theloanamountis

A）$1000.

B）$1210.

C）$2000.

D）$2200.

Answer:

C

AACSB:

AnalyticalThinking

32）Fora3-yearsimpleloanof$10,000at10percent,theamounttoberepaidis

A）$10,030.

B）$10,300.

C）$13,000.

D）$13,310.

Answer:

D

AACSB:

AnalyticalThinking

33）If$22,050istheamountpayableintwoyearsfora$20,000simpleloanmadetoday,theinterestrateis

A）5percent.

B）10percent.

C）22percent.

D）25percent.

Answer:

A

AACSB:

AnalyticalThinking

34）Ifasecuritypays$110nextyearand$121theyearafterthat,whatisitsyieldtomaturityifitsellsfor$200?

A）9percent

B）10percent

C）11percent

D）12percent

Answer:

B

AACSB:

AnalyticalThinking

35）Thepresentvalueofafixed-paymentloaniscalculatedasthe________ofthepresentvalueofallcashflowpayments.

A）sum

B）difference

C）multiple

D）log

Answer:

A

AACSB:

AnalyticalThinking

36）WhichofthefollowingareTRUEforacouponbond?

A）Whenthecouponbondispricedatitsfacevalue,theyieldtomaturityequalsthecouponrate.

B）Thepriceofacouponbondandtheyieldtomaturityarepositivelyrelated.

C）Theyieldtomaturityisgreaterthanthecouponratewhenthebondpriceisabovetheparvalue.

D）Theyieldislessthanthecouponratewhenthebondpriceisbelowtheparvalue.

Answer:

A

AACSB:

ReflectiveThinking

37）The________ofacouponbondandtheyieldtomaturityareinverselyrelated.

A）price

B）parvalue

C）maturitydate

D）term

Answer:

A

AACSB:

ReflectiveThinking

38）Thepriceofacouponbondandtheyieldtomaturityare________related;thatis,astheyieldtomaturity________,thepriceofthebond________.

A）positively;rises;rises

B）negatively;falls;falls

C）positively;rises;falls

D）negatively;rises;falls

Answer:

D

AACSB:

ReflectiveThinking

39）Theyieldtomaturityis________thanthe________ratewhenthebondpriceis________itsfacevalue.

A）greater;coupon;above

B）greater;coupon;below

C）greater;perpetuity;above

D）less;perpetuity;below

Answer:

B

AACSB:

ReflectiveThinking

40）The________isbelowthecouponratewhenthebondpriceis________itsparvalue.

A）yieldtomaturity;above

B）yieldtomaturity;below

C）discountrate;above

D）discountrate;below

Answer:

A

AACSB:

ReflectiveThinking

41）A$10,0008percentcouponbondthatsellsfor$10,000hasayieldtomaturityof

A）8percent.

B）10percent.

C）12percent.

D）14percent.

Answer:

A

AACSB:

AnalyticalThinking

42）Whichofthefollowing$1,000face-valuesecuritieshasthehighestyieldtomaturity?

A）a5percentcouponbondsellingfor$1,000

B）a10percentcouponbondsellingfor$1,000

C）a12percentcouponbond