货币金融学chapter4英文习题.pdf

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1、1 Copyright 2016 Pearson Education,Ltd.Economics of Money,Banking,and Financial Markets,11e,Global Edition(Mishkin)Chapter 4 The Meaning of Interest Rates 4.1 Measuring Interest Rates 1)The concept of _ is based on the common-sense notion that a dollar paid to you in the future is less valuable to y

2、ou than a dollar today.A)present value B)future value C)interest D)deflation Answer:A AACSB:Application of Knowledge 2)The present value of an expected future payment _ as the interest rate increases.A)falls B)rises C)is constant D)is unaffected Answer:A AACSB:Reflective Thinking 3)An increase in th

3、e time to the promised future payment _ the present value of the payment.A)decreases B)increases C)has no effect on D)is irrelevant to Answer:A AACSB:Reflective Thinking 4)With an interest rate of 6 percent,the present value of$100 next year is approximately A)$106.B)$100.C)$94.D)$92.Answer:C AACSB:

4、Analytical Thinking 5)What is the present value of$500.00 to be paid in two years if the interest rate is 5 percent?A)$453.51 B)$500.00 C)$476.25 D)$550.00 Answer:A AACSB:Analytical Thinking 2 Copyright 2016 Pearson Education,Ltd.6)If a security pays$55 in one year and$133 in three years,its present

5、 value is$150 if the interest rate is A)5 percent.B)10 percent.C)12.5 percent.D)15 percent.Answer:B AACSB:Analytical Thinking 7)To claim that a lottery winner who is to receive$1 million per year for twenty years has won$20 million ignores the process of A)face value.B)par value.C)deflation.D)discou

6、nting the future.Answer:D AACSB:Analytical Thinking 8)A credit market instrument that provides the borrower with an amount of funds that must be repaid at the maturity date along with an interest payment is known as a A)simple loan.B)fixed-payment loan.C)coupon bond.D)discount bond.Answer:A AACSB:Ap

7、plication of Knowledge 9)A credit market instrument that requires the borrower to make the same payment every period until the maturity date is known as a A)simple loan.B)fixed-payment loan.C)coupon bond.D)discount bond.Answer:B AACSB:Application of Knowledge 10)Which of the following are TRUE of fi

8、xed payment loans?A)The borrower repays both the principal and interest at the maturity date.B)Installment loans and mortgages are frequently of the fixed payment type.C)The borrower pays interest periodically and the principal at the maturity date.D)Commercial loans to businesses are often of this

9、type.Answer:B AACSB:Reflective Thinking 3 Copyright 2016 Pearson Education,Ltd.11)A fully amortized loan is another name for A)a simple loan.B)a fixed-payment loan.C)a commercial loan.D)an unsecured loan.Answer:B AACSB:Application of Knowledge 12)A credit market instrument that pays the owner a fixe

10、d coupon payment every year until the maturity date and then repays the face value is called a A)simple loan.B)fixed-payment loan.C)coupon bond.D)discount bond.Answer:C AACSB:Application of Knowledge 13)A _ pays the owner a fixed coupon payment every year until the maturity date,when the _ value is

11、repaid.A)coupon bond;discount B)discount bond;discount C)coupon bond;face D)discount bond;face Answer:C AACSB:Analytical Thinking 14)The _ is the final amount that will be paid to the holder of a coupon bond.A)discount value B)coupon value C)face value D)present value Answer:C AACSB:Application of K

12、nowledge 15)When talking about a coupon bond,face value and _ mean the same thing.A)par value B)coupon value C)amortized value D)discount value Answer:A AACSB:Application of Knowledge 4 Copyright 2016 Pearson Education,Ltd.16)The dollar amount of the yearly coupon payment expressed as a percentage o

13、f the face value of the bond is called the bonds A)coupon rate.B)maturity rate.C)face value rate.D)payment rate.Answer:A AACSB:Application of Knowledge 17)The _ is calculated by multiplying the coupon rate times the par value of the bond.A)present value B)face value C)coupon payment D)maturity payme

14、nt Answer:C AACSB:Analytical Thinking 18)If a$1000 face value coupon bond has a coupon rate of 3.75 percent,then the coupon payment every year is A)$37.50.B)$3.75.C)$375.00.D)$13.75 Answer:A AACSB:Analytical Thinking 19)If a$5,000 coupon bond has a coupon rate of 13 percent,then the coupon payment e

15、very year is A)$650.B)$1,300.C)$130.D)$13.Answer:A AACSB:Analytical Thinking 20)An$8,000 coupon bond with a$400 coupon payment every year has a coupon rate of A)5 percent.B)8 percent.C)10 percent.D)40 percent.Answer:A AACSB:Analytical Thinking 5 Copyright 2016 Pearson Education,Ltd.21)A$1000 face va

16、lue coupon bond with a$60 coupon payment every year has a coupon rate of A).6 percent.B)5 percent.C)6 percent.D)10 percent.Answer:C AACSB:Analytical Thinking 22)All of the following are examples of coupon bonds EXCEPT A)corporate bonds.B)U.S.Treasury bills.C)U.S.Treasury notes.D)U.S.Treasury bonds.A

17、nswer:B AACSB:Analytical Thinking 23)A bond that is bought at a price below its face value and the face value is repaid at a maturity date is called a A)simple loan.B)fixed-payment loan.C)coupon bond.D)discount bond.Answer:D AACSB:Application of Knowledge 24)A _ is bought at a price below its face v

18、alue,and the _ value is repaid at the maturity date.A)coupon bond;discount B)discount bond;discount C)coupon bond;face D)discount bond;face Answer:D AACSB:Analytical Thinking 25)A discount bond A)pays the bondholder a fixed amount every period and the face value at maturity.B)pays the bondholder the

19、 face value at maturity.C)pays all interest and the face value at maturity.D)pays the face value at maturity plus any capital gain.Answer:B AACSB:Reflective Thinking 6 Copyright 2016 Pearson Education,Ltd.26)Examples of discount bonds include A)U.S.Treasury bills.B)corporate bonds.C)U.S.Treasury not

20、es.D)municipal bonds.Answer:A AACSB:Analytical Thinking 27)Which of the following are TRUE for discount bonds?A)A discount bond is bought at par.B)The purchaser receives the face value of the bond at the maturity date.C)U.S.Treasury bonds and notes are examples of discount bonds.D)The purchaser rece

21、ives the par value at maturity plus any capital gains.Answer:B AACSB:Reflective Thinking 28)The interest rate that equates the present value of payments received from a debt instrument with its value today is the A)simple interest rate.B)current yield.C)yield to maturity.D)real interest rate.Answer:

22、C AACSB:Application of Knowledge 29)Economists consider the _ to be the most accurate measure of interest rates.A)simple interest rate.B)current yield.C)yield to maturity.D)real interest rate.Answer:C AACSB:Reflective Thinking 30)For simple loans,the simple interest rate is _ the yield to maturity.A

23、)greater than B)less than C)equal to D)not comparable to Answer:C AACSB:Application of Knowledge 7 Copyright 2016 Pearson Education,Ltd.31)If the amount payable in two years is$2420 for a simple loan at 10 percent interest,the loan amount is A)$1000.B)$1210.C)$2000.D)$2200.Answer:C AACSB:Analytical

24、Thinking 32)For a 3-year simple loan of$10,000 at 10 percent,the amount to be repaid is A)$10,030.B)$10,300.C)$13,000.D)$13,310.Answer:D AACSB:Analytical Thinking 33)If$22,050 is the amount payable in two years for a$20,000 simple loan made today,the interest rate is A)5 percent.B)10 percent.C)22 pe

25、rcent.D)25 percent.Answer:A AACSB:Analytical Thinking 34)If a security pays$110 next year and$121 the year after that,what is its yield to maturity if it sells for$200?A)9 percent B)10 percent C)11 percent D)12 percent Answer:B AACSB:Analytical Thinking 35)The present value of a fixed-payment loan i

26、s calculated as the _ of the present value of all cash flow payments.A)sum B)difference C)multiple D)log Answer:A AACSB:Analytical Thinking 8 Copyright 2016 Pearson Education,Ltd.36)Which of the following are TRUE for a coupon bond?A)When the coupon bond is priced at its face value,the yield to matu

27、rity equals the coupon rate.B)The price of a coupon bond and the yield to maturity are positively related.C)The yield to maturity is greater than the coupon rate when the bond price is above the par value.D)The yield is less than the coupon rate when the bond price is below the par value.Answer:A AA

28、CSB:Reflective Thinking 37)The _ of a coupon bond and the yield to maturity are inversely related.A)price B)par value C)maturity date D)term Answer:A AACSB:Reflective Thinking 38)The price of a coupon bond and the yield to maturity are _ related;that is,as the yield to maturity _,the price of the bo

29、nd _.A)positively;rises;rises B)negatively;falls;falls C)positively;rises;falls D)negatively;rises;falls Answer:D AACSB:Reflective Thinking 39)The yield to maturity is _ than the _ rate when the bond price is _ its face value.A)greater;coupon;above B)greater;coupon;below C)greater;perpetuity;above D

30、)less;perpetuity;below Answer:B AACSB:Reflective Thinking 40)The _ is below the coupon rate when the bond price is _ its par value.A)yield to maturity;above B)yield to maturity;below C)discount rate;above D)discount rate;below Answer:A AACSB:Reflective Thinking 9 Copyright 2016 Pearson Education,Ltd

31、.41)A$10,000 8 percent coupon bond that sells for$10,000 has a yield to maturity of A)8 percent.B)10 percent.C)12 percent.D)14 percent.Answer:A AACSB:Analytical Thinking 42)Which of the following$1,000 face-value securities has the highest yield to maturity?A)a 5 percent coupon bond selling for$1,00

32、0 B)a 10 percent coupon bond selling for$1,000 C)a 12 percent coupon bond selling for$1,000 D)a 12 percent coupon bond selling for$1,100 Answer:C AACSB:Analytical Thinking 43)Which of the following$5,000 face-value securities has the highest yield to maturity?A)a 6 percent coupon bond selling for$5,

33、000 B)a 6 percent coupon bond selling for$5,500 C)a 10 percent coupon bond selling for$5,000 D)a 12 percent coupon bond selling for$4,500 Answer:D AACSB:Analytical Thinking 44)Which of the following$1,000 face-value securities has the highest yield to maturity?A)a 5 percent coupon bond with a price

34、of$600 B)a 5 percent coupon bond with a price of$800 C)a 5 percent coupon bond with a price of$1,000 D)a 5 percent coupon bond with a price of$1,200 Answer:A AACSB:Analytical Thinking 45)Which of the following$1,000 face-value securities has the lowest yield to maturity?A)a 5 percent coupon bond sel

35、ling for$1,000 B)a 10 percent coupon bond selling for$1,000 C)a 15 percent coupon bond selling for$1,000 D)a 15 percent coupon bond selling for$900 Answer:A AACSB:Analytical Thinking 46)Which of the following bonds would you prefer to be buying?A)a$10,000 face-value security with a 10 percent coupon

36、 selling for$9,000 B)a$10,000 face-value security with a 7 percent coupon selling for$10,000 C)a$10,000 face-value security with a 9 percent coupon selling for$10,000 D)a$10,000 face-value security with a 10 percent coupon selling for$10,000 Answer:A AACSB:Analytical Thinking 10 Copyright 2016 Pears

37、on Education,Ltd.47)A coupon bond that has no maturity date and no repayment of principal is called a A)consol.B)cabinet.C)Treasury bill.D)Treasury note.Answer:A AACSB:Application of Knowledge 48)The price of a consol equals the coupon payment A)times the interest rate.B)plus the interest rate.C)min

38、us the interest rate.D)divided by the interest rate.Answer:D AACSB:Analytical Thinking 49)The interest rate on a consol equals the A)price times the coupon payment.B)price divided by the coupon payment.C)coupon payment plus the price.D)coupon payment divided by the price.Answer:D AACSB:Analytical Th

39、inking 50)A consol paying$20 annually when the interest rate is 5 percent has a price of A)$100.B)$200.C)$400.D)$800.Answer:C AACSB:Analytical Thinking 51)If a perpetuity has a price of$500 and an annual interest payment of$25,the interest rate is A)2.5 percent.B)5 percent.C)7.5 percent.D)10 percent

40、.Answer:B AACSB:Analytical Thinking 11 Copyright 2016 Pearson Education,Ltd.52)The yield to maturity for a perpetuity is a useful approximation for the yield to maturity on long-term coupon bonds.It is called the _ when approximating the yield for a coupon bond.A)current yield B)discount yield C)fut

41、ure yield D)star yield Answer:A AACSB:Reflective Thinking 53)The yield to maturity for a one-year discount bond equals the increase in price over the year,divided by the A)initial price.B)face value.C)interest rate.D)coupon rate.Answer:A AACSB:Analytical Thinking 54)If a$10,000 face-value discount b

42、ond maturing in one year is selling for$5,000,then its yield to maturity is A)5 percent.B)10 percent.C)50 percent.D)100 percent.Answer:D AACSB:Analytical Thinking 55)If a$5,000 face-value discount bond maturing in one year is selling for$5,000,then its yield to maturity is A)0 percent.B)5 percent.C)

43、10 percent.D)20 percent.Answer:A AACSB:Analytical Thinking 56)A discount bond selling for$15,000 with a face value of$20,000 in one year has a yield to maturity of A)3 percent.B)20 percent.C)25 percent.D)33.3 percent.Answer:D AACSB:Analytical Thinking 12 Copyright 2016 Pearson Education,Ltd.57)The y

44、ield to maturity for a discount bond is _ related to the current bond price.A)negatively B)positively C)not D)directly Answer:A AACSB:Reflective Thinking 58)A discount bond is also called a _ because the owner does not receive periodic payments.A)zero-coupon bond B)municipal bond C)corporate bond D)

45、consol Answer:A AACSB:Application of Knowledge 59)Another name for a consol is a _ because it is a bond with no maturity date.The owner receives fixed coupon payments forever.A)perpetuity B)discount bond C)municipality D)high-yield bond Answer:A AACSB:Application of Knowledge 60)If the interest rate

46、 is 5%,what is the present value of a security that pays you$1,050 next year and$1,102.50 two years from now?If this security sold for$2200,is the yield to maturity greater or less than 5%?Why?Answer:PV=$1,050/(1.+.05)+$1,102.50/(1+0.5)2 PV=$2,000 If this security sold for$2200,the yield to maturity

47、 is less than 5%.The lower the interest rate the higher the present value.AACSB:Analytical Thinking 4.2 The Distinction Between Interest Rates and Returns 1)The _ is defined as the payments to the owner plus the change in a securitys value expressed as a fraction of the securitys purchase price.A)yi

48、eld to maturity B)current yield C)rate of return D)yield rate Answer:C AACSB:Application of Knowledge 13 Copyright 2016 Pearson Education,Ltd.2)Which of the following are TRUE concerning the distinction between interest rates and returns?A)The rate of return on a bond will not necessarily equal the

49、interest rate on that bond.B)The return can be expressed as the difference between the current yield and the rate of capital gains.C)The rate of return will be greater than the interest rate when the price of the bond falls during the holding period.D)The return can be expressed as the sum of the di

50、scount yield and the rate of capital gains.Answer:A AACSB:Reflective Thinking 3)The sum of the current yield and the rate of capital gain is called the A)rate of return.B)discount yield.C)perpetuity yield.D)par value.Answer:A AACSB:Analytical Thinking 4)What is the return on a 5 percent coupon bond