Ünite Sınavı Soruları

Suppose that the company has a policy of increasing their dividends by 1.5% every year. Suppose their last dividend paid was $3 and the discount rate is 8%. What is the market price of the stock?

Which one is true about bonds?

What is the investor’s real return if a bond offers an investor 21% in nominal return during a year in which the rate of inflation is 18%?

Which of the followings happens if market interest rates increase?

Suppose the company distributes $10 as dividend every year and it is not expected to change. If the required rate of return for this stock is 8%, how much should be selling in the market?

Stocks that provide all or almost all of their returns from dividend yield are called .......... stocks. 

Which of the rates below does correspond to the nominal interest rate if the investors in the market demand 5% real rate of return from a specific investment for the next year and expects inflation to be 15% for that period?

Which of the following is the term for the stocks of the companies that are using their profits and cash flows to support its investments, and as a result do not have resources to pay dividends.

Suppose that a bond pays coupons semi-annually and has a coupon rate of 15% with a maturity of 5 years. A bond investor is expected to receive 10 (2 x 5 years) coupon payments, each paying  7.5 (15/2) over the five-year period and receive par value after 10 periods.  Then, the value of this semi-annual coupon paying bond is …

When the market's required rate of return for a particular bond is much less than its coupon rate, the bond is selling at ................

1. Yield curve plots the relationship between bond yields and maturity.
2. One can infer the future levels of interest rates by examining the shape of the yield curve.
3. In general, yield curves are upward sloping because investors may require more yield to invest in long-term bonds.
4. Prices of long-term bonds fluctuate more with the changes in interest rates.
5. Downward sloping yield curve implies that short-term interest rates will increase in the future.

Which of the statements above about yield curve are correct?

If the intrinsic value of a stock is smaller than its market value, which of the following is a reasonable conclusion?

Which of the followings refers to the difference between the promised yield on the corporate bond and the yield on government bond with the same coupon rate and maturity?

If a bond's initial price is 110 and its current price is 120, and its cupon payment is 20, what will be the rate of return?

Which of the followings suggests that the value of stock is equal to the present value of all future dividends that investors expect to get from that stock?

_ _ _ _ _ _ _ is a debt security that contractually obligates the issuer to make fixed coupon payments at fixed intervals for a fixed amount of time plus it also pays out the face value of the bond at maturity together with the last coupon payment.

Which of the following completes the sentences above?

1. Coupon payments are the periodic payments received by bondholders until the bond matures.
2. The annual coupon payment is equal to the coupon rate times the par value of the bond.
3. Some bonds pay their coupons in more than one payment per year, such as semi-annually or quarterly.
4. The coupon rate and maturity date are specified in bond’s indenture.
5. The indenture is a contract between issuer and bondholder specifying the characteristics of the bond.

Which of the statements above about bonds are correct?

What does an upward sloping yield curve imply?