
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Transcribed Image Text:1. Shares in the ownership of the company.
a. Stocks
b. Bonds
c. Dividend
d. Coupon
2. The interest-bearing security which promises to pay amount of money on a certain
maturity date as stated in the bond certificate.
a. Stocks
b. Bonds
c. Dividend
d. Coupon
3. A property holding declared a dividend of P9 per share for the common stock. If the
common stock closes at P76, how large is the stock yield ratio on this investment?
a. 27. 17%
b. 27.07%
c. 11.04%
d. 11.84%
4. Suppose that a bond has a face value of P100,000 and its maturity date is 10 years
from now. The coupon rate is 5% payable semi-annually. Find the fair price of this
bond, assuming that the annual market rate is 4%.
a. 108,412.43
b. 108,612.43
c. 108,512.43
d. 108,712.43
5. Measure of a portion of the stock market
a. Value of the index
c. stock market index
d. dividend index
6. Investors are guaranteed interest payments and return of their money at maturity
b. Change of the index
date.
a. Stocks
b. Bonds
c. Dividend
d. Coupon
7. Determine the amount of semi-annual coupon paid for a 3% bond with a face value
of P80,000 which matures after 15 years.
а. Р 1,250
b. P 1,200
с. Р 1,300
d. P 1,500
8. States that prices of investments reflect all available information.
a. Theory of efficient bonds
b. Theory of efficient stocks
c. Theory of efficient markets
d. Theory of stock market
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