Chapter 7 - BUS 361 Sample Test Answers

1. a

2. a

3. e

4. a

5. b

6. c

7. d

8. a

9. d

10. c

11. d

12. c

13. d (Bond price is $1090.22, which you pay now. CFs during the first year include $120 coupon payment and $1125 sale price. Using the original price and the two CFs at the end of year 1, solve for the one-year rate of return.)

14. b

15. c