货币金融学chapter英文习题

1、Economics of Money, Banking, and Financial Markets, 11e, Global Edition (Mishkin)Chapter 4 The Meaning of Interest Rates4、 1 Measuring Interest Rates1) The concept of is based on the mon-sense notion that a dollar paid to you in thefuture is less valuable to you than a dollar toda、ypresent valuefutu

2、re valueinterestdeflationAnswer: AAACSB: Application of KnowledgeThe present value of an expected future payment as the interest rate increa、 sesfallsrisesis constantis unaffectedAnswer: AAACSB: Reflective ThinkingAn increase in the time to the promised future payment the present value of thepayment

3、、decreasesincreaseshas no effect onis irrelevant toAnswer: AAACSB: Reflective ThinkingWith an interest rate of 6 percent, the present value of $100 next year is approximately$106、$100、$94、$92、Answer: CAACSB: Analytical ThinkingWhat is the present value of $500、 00 to be paid in two years if the inte

4、rest rate is 5 percent?$453、 51$500、 00$476、 25$550、 00Answer: AAACSB: Analytical ThinkingIf a security pays $55 in one year and $133 in three years, its present value is $150 if the interest rate is5 percent、10 percent、12、 5 percen、t15 percent、Answer: BAACSB: Analytical ThinkingTo claim that a lott

5、ery winner who is to receive $1 million per year for twenty years has won $20 million ignores the process offace value、par value、deflation、discounting the future、Answer: DAACSB: Analytical ThinkingA credit market instrument that provides the borrower with an amount of funds that must be repaid at th

6、e maturity date along with an interest payment is known as asimple loan、fixed-payment loan、coupon bond、discount bond、Answer: AAACSB: Application of KnowledgeA credit market instrument that requires the borrower to make the same payment every period until the maturity date is known as asimple loan、fi

7、xed-payment loan、coupon bond、discount bond、Answer: BAACSB: Application of KnowledgeWhich of the following are TRUE of fixed payment loans?The borrower repays both the principal and interest at the maturity dat、 eInstallment loans and mortgages are frequently of the fixed payment typ、eThe borrower pa

8、ys interest periodically and the principal at the maturity dat、emercial loans to businesses are often of this typ、eAnswer: BAACSB: Reflective ThinkingA fully amortized loan is another name fora simple loan、a fixed-payment loan、a mercial loan、an unsecured loan、Answer: BAACSB: Application of Knowledge

9、A credit market instrument that pays the owner a fixed coupon payment every year until the maturity date and then repays the face value is called asimple loan、fixed-payment loan、coupon bond、discount bond、Answer: CAACSB: Application of KnowledgeA pays the owner a fixed coupon payment every year until

10、 the maturity date, whenthe value is repaid、coupon bond; discountdiscount bond; discountcoupon bond; facediscount bond; faceAnswer: CAACSB: Analytical ThinkingThe is the final amount that will be paid to the holder of a coupon bon、ddiscount valuecoupon valueface valuepresent valueAnswer: CAACSB: App

11、lication of KnowledgeWhen talking about a coupon bond, face value and mean the same th、ingpar valuecoupon valueamortized valuediscount valueAnswer: AAACSB: Application of KnowledgeThe dollar amount of the yearly coupon payment expressed as a percentage of the face value of the bond is called the bon

12、dscoupon rate、maturity rate、face value rate、payment rate、Answer: AAACSB: Application of KnowledgeThe is calculated by multiplying the coupon rate times the par value of the bon、 dpresent valueface valuecoupon paymentmaturity paymentAnswer: CAACSB: Analytical ThinkingIf a $1000 face value coupon bond

13、 has a coupon rate of、 375 percent, then the coupon payment every year is$37、 50、$3、 75、$375、 00、$13、 75Answer: AAACSB: Analytical ThinkingIf a $5,000 coupon bond has a coupon rate of 13 percent, then the coupon payment every year is$650、$1,300、$130、$13、Answer: AAACSB: Analytical ThinkingAn $8,000 c

14、oupon bond with a $400 coupon payment every year has a coupon rate of5 percent、8 percent、10 percen、t40 percent、Answer: AAACSB: Analytical ThinkingA $1000 face value coupon bond with a $60 coupon payment every year has a coupon rate of、 6 percent、5 percent、6 percent、10 percent、Answer: CAACSB: Analyti

15、cal ThinkingAll of the following are examples of coupon bonds EXCEPTcorporate bonds、U 、 S、Treasury bills、U 、 S、Treasury notes、U 、 S、Treasury bonds、Answer: BAACSB: Analytical ThinkingA bond that is bought at a price below its face value and the face value is repaid at a maturity date is called asimpl

16、e loan、fixed-payment loan、coupon bond、discount bond、Answer: DAACSB: Application of KnowledgeA is bought at a price below its face value, and the value is repaid at thematurity date、coupon bond; discountdiscount bond; discountcoupon bond; facediscount bond; faceAnswer: DAACSB: Analytical ThinkingA di

17、scount bondpays the bondholder a fixed amount every period and the face value at maturi、typays the bondholder the face value at maturit、ypays all interest and the face value at maturit、ypays the face value at maturity plus any capital gai、nAnswer: BAACSB: Reflective ThinkingExamples of discount bond

18、s includeU 、 S、Treasury bills、corporate bonds、U 、 S、Treasury notes、municipal bonds、Answer: AAACSB: Analytical ThinkingWhich of the following are TRUE for discount bonds?A discount bond is bought at par、The purchaser receives the face value of the bond at the maturity da、 teU 、 S、Treasury bonds and n

19、otes are examples of discount bon、 dsThe purchaser receives the par value at maturity plus any capital gain、 sAnswer: BAACSB: Reflective ThinkingThe interest rate that equates the present value of payments received from a debt instrument with its value today is thesimple interest rate、current yield、

20、yield to maturity、real interest rate、Answer: CAACSB: Application of KnowledgeEconomists consider the to be the most accurate measure of interest ra、 tessimple interest rate、current yield、yield to maturity、real interest rate、Answer: CAACSB: Reflective ThinkingFor simple loans, the simple interest rat

21、e is the yield to maturi、tygreater thanless thanequal tonot parable toAnswer: CAACSB: Application of KnowledgeIf the amount payable in two years is $2420 for a simple loan at 10 percent interest, the loan amount is$1000、$1210、$2000、$2200、Answer: CAACSB: Analytical ThinkingFor a 3-year simple loan of

22、 $10,000 at 10 percent, the amount to be repaid is$10,030、$10,300、$13,000、$13,310、Answer: DAACSB: Analytical ThinkingIf $22,050 is the amount payable in two years for a $20,000 simple loan made today, the interest rate is5 percent、10 percent、22 percen、t25 percent、Answer: AAACSB: Analytical ThinkingI

23、f a security pays $110 next year and $121 the year after that, what is its yield to maturity if it sells for $200?9 percent10 percent11 percent12 percentAnswer: BAACSB: Analytical ThinkingThe present value of a fixed-payment loan is calculated as the of the present valueof all cash flow payments、sum

24、differencemultiplelogAnswer: AAACSB: Analytical ThinkingWhich of the following are TRUE for a coupon bond?When the coupon bond is priced at its face value, the yield to maturity equals the coupon rate、The price of a coupon bond and the yield to maturity are positively related、The yield to maturity i

25、s greater than the coupon rate when the bond price is above the par value、The yield is less than the coupon rate when the bond price is below the par val、ueAnswer: AAACSB: Reflective ThinkingThe of a coupon bond and the yield to maturity are inversely relate、 dpricepar valuematurity datetermAnswer:

26、AAACSB: Reflective ThinkingThe price of a coupon bond and the yield to maturity are related; that is, as theyield to maturity , the price of the bond 、positively; rises; risesnegatively; falls; fallspositively; rises; fallsnegatively; rises; fallsAnswer: DAACSB: Reflective ThinkingThe yield to matur

27、ity is than the rate when the bond price is its face value、greater; coupon; abovegreater; coupon; belowgreater; perpetuity; aboveless; perpetuity; belowAnswer: BAACSB: Reflective ThinkingThe is below the coupon rate when the bond price is its par val、ueyield to maturity; aboveyield to maturity; belo

28、wdiscount rate; abovediscount rate; belowAnswer: AAACSB: Reflective ThinkingA $10,000 8 percent coupon bond that sells for $10,000 has a yield to maturity of8 percent、10 percent、12 percen、t14 percent、Answer: AAACSB: Analytical ThinkingWhich of the following $1,000 face-value securities has the highe

29、st yield to maturity?a 5 percent coupon bond selling for $1,000a 10 percent coupon bond selling for $1,000C) a 12 percent coupon bond selling for $1,000D) a 12 percent coupon bond selling for $1,100Answer: CAACSB: Analytical ThinkingWhich of the following $5,000 face-value securities has the highest

30、 yield to maturity?a 6 percent coupon bond selling for $5,000a 6 percent coupon bond selling for $5,500C) a 10 percent coupon bond selling for $5,000D) a 12 percent coupon bond selling for $4,500Answer: DAACSB: Analytical ThinkingWhich of the following $1,000 face-value securities has the highest yi

31、eld to maturity?a 5 percentcouponbondwith aprice of $600a 5 percentcouponbondwith aprice of $800a 5 percentcouponbondwith aprice of $1,000a 5 percentcouponbondwith aprice of $1,200Answer: AAACSB: Analytical ThinkingWhich of the following $1,000 face-value securities has the lowest yield to maturity?

32、a 5 percent coupon bond selling for $1,000a 10 percent coupon bond selling for $1,000C) a 15 percent coupon bond selling for $1,000D) a 15 percent coupon bond selling for $900Answer: AAACSB: Analytical ThinkingWhich of the following bonds would you prefer to be buying?A) a $10,000 face-value securit

33、y with a 10 percent coupon selling for $9,000B) a $10,000 face-value security with a 7 percent coupon selling for $10,000C) a $10,000 face-value security with a 9 percent coupon selling for $10,000D) a $10,000 face-value security with a 10 percent coupon selling for $10,000Answer: AAACSB: Analytical

34、 ThinkingA coupon bond that has no maturity date and no repayment of principal is called aA) consol、cabinet、Treasury bill、Treasury note、Answer: AAACSB: Application of KnowledgeThe price of a consol equals the coupon paymenttimes the interest rate、plus the interest rate、minus the interest rate、divide

35、d by the interest rate、Answer: DAACSB: Analytical ThinkingThe interest rate on a consol equals theprice times the coupon paymen、tprice divided by the coupon paymen、tcoupon payment plus the price、coupon payment divided by the price、Answer: DAACSB: Analytical ThinkingA consol paying $20 annually when

36、the interest rate is 5 percent has a price of$100、$200、$400、$800、Answer: CAACSB: Analytical ThinkingIf a perpetuity has a price of $500 and an annual interest payment of $25, the interest rate is2、 5 percent、5 percent、7、 5 percent、10 percent、Answer: BAACSB: Analytical ThinkingThe yield to maturity f

37、or 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 couponbond、current yielddiscount yieldfuture yieldstar yieldAnswer: AAACSB: Reflective ThinkingThe yield to maturity for a one-year discount bond equals t

38、he increase in price over the year, divided by theinitial price 、face value、interest rate、coupon rate、Answer: AAACSB: Analytical ThinkingIf a $10,000 face-value discount bond maturing in one year is selling for $5,000, then its yield to maturity is5 percent、10 percent、50 percen、t100 percent、Answer:

39、DAACSB: Analytical ThinkingIf a $5,000 face-value discount bond maturing in one year is selling for $5,000, then its yield to maturity is0 percent、5 percent、10 percen、t20 percent、Answer: AAACSB: Analytical ThinkingA discount bond selling for $15,000 with a face value of $20,000 in one year has a yie

40、ld to maturity of3 percent、20 percent、25 percen、t33、 3 percen、tAnswer: DAACSB: Analytical ThinkingThe yield to maturity for a discount bond is related to the current bond pric、eA) negativelyB) positivelyC) notD) directlyAnswer: AAACSB: Reflective ThinkingA discount bond is also called a because the

41、owner does not receive periodicpayments、A) zero-coupon bondB) municipal bondC) corporate bondD) consolAnswer: AAACSB: Application of KnowledgeAnother name for a consol is a because it is a bond with no maturity da、 te Theowner receives fixed coupon payments foreve、 rA) perpetuityB) discount bondC) m

42、unicipalityD) high-yield bondAnswer: AAACSB: Application of KnowledgeIf the interest rate 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: P

43、V = $1,050/(1、+、 05) + $1,102、 50/(1 + 0、 5)2PV = $2,000If this security sold for $2200, the yield to maturity is less than 5%、 The lower the interest rate the higher the present valu、eAACSB: Analytical Thinking4、 2 The Distinction Between Interest Rates and Returns1) The is defined as the payments

44、to the owner plus the change in a securitys valueexpressed as a fraction of the securitys purchase pri、ceyield to maturitycurrent yieldrate of returnyield rateAnswer: CAACSB: Application of KnowledgeWhich of the following are TRUE concerning the distinction between interest rates and returns?The rat

45、e of return on a bond will not necessarily equal the interest rate on that bon、 dThe return can be expressed as the difference between the current yield and the rate of capital gains、The rate of return will be greater than the interest rate when the price of the bond falls during the holding period、

46、The return can be expressed as the sum of the discount yield and the rate of capital ga、 ins Answer: AAACSB: Reflective ThinkingThe sum of the current yield and the rate of capital gain is called therate of return、discount yield、perpetuity yield、par value、Answer: AAACSB: Analytical ThinkingWhat is t

47、he return on a 5 percent coupon bond that initially sells for $1,000 and sells for $1,200 next year?5 percent10 percent-5 percent25 percentAnswer: DAACSB: Analytical ThinkingWhat is the return on a 5 percent coupon bond that initially sells for $1,000 and sells for $900 next year?5 percent10 percent

48、-5 percent-10 percentAnswer: CAACSB: Analytical ThinkingThe return on a 5 percent coupon bond that initially sells for $1,000 and sells for $950 next year is-10 percent、-5 percent、0 percent、5 percent、Answer: CAACSB: Analytical ThinkingSuppose you are holding a 5 percent coupon bond maturing in one y

49、ear with a yield to maturity of 15 percent、 If the interest rate on one-year bonds rises from 15 percent to 20 percent over the course of the year, what is the yearly return on the bond you are holding? A) 5 percent10 percent15 percent20 percentAnswer: CAACSB: Analytical ThinkingI purchase a 10 perc

50、ent coupon bon、d Based on my purchase price, I calculate a yield to maturity of 8 percent、If I hold this bond to maturity, then my return on this asset is10 percent、8 percent、12 percen、tthere is not enough information to determine the return、Answer: BAACSB: Analytical ThinkingIf the interest rates o

51、n all bonds rise from 5 to 6 percent over the course of the year, which bond would you prefer to have been holding?a bond with one year to maturitya bond with five years to maturitya bond with ten years to maturitya bond with twenty years to maturityAnswer: AAACSB: Analytical ThinkingAn equal decrea

52、se in all bond interest ratesincreases the price of a five-year bond more than the price of a ten-year bon、 dincreases the price of a ten-year bond more than the price of a five-year bo、nddecreases the price of a five-year bond more than the price of a ten-year bo、 nddecreases the price of a ten-yea

53、r bond more than the price of a five-year bo、ndAnswer: BAACSB: Analytical ThinkingAn equal increase in all bond interest ratesincreases the return to all bond maturities by an equal amou、ntdecreases the return to all bond maturities by an equal amou、 nthas no effect on the returns to bond、 sdecrease

54、s long-term bond returns more than short-term bond retur、nsAnswer: DAACSB: Analytical ThinkingWhich of the following are generally TRUE of bonds?A bonds return equals the yield to maturity when the time to maturity is the same as the holding period、A rise in interest rates is associated with a fall

55、in bond prices, resulting in capital gains on bonds whose terms to maturity are longer than the holding period、 sThe longer a bonds maturity, the smaller is the size of the price change associated with an interest rate chang、ePrices and returns for short-term bonds are more volatile than those for l

56、onger-term bon、dsAnswer: AAACSB: Reflective ThinkingWhich of the following are generally TRUE of all bonds?The longer a bonds maturity, the greater is the rate of return that occurs as a result of the increase in the interest rat、eEven though a bond has a substantial initial interest rate, its retur

57、n can turn out to be negative if interest rates rise、Prices and returns for short-term bonds are more volatile than those for longer term bon、 dsA fall in interest rates results in capital losses for bonds whose terms to maturity are longer than the holding period、Answer: BAACSB: Reflective Thinking

58、The riskiness of an assets returns due to changes in interest rates isexchange-rate risk、price risk、asset risk、interest-rate risk、Answer: DAACSB: Application of KnowledgeInterest-rate risk is the riskiness of an assets returns due tointerest-rate changes、changes in the coupon rat、edefault of the bor

59、rower、changes in the assets maturit、 yAnswer: AAACSB: Application of KnowledgePrices and returns for bonds are more volatile than those for bonds,everything else held constan、 tlong-term; long-termlong-term; short-termshort-term; long-termshort-term; short-termAnswer: BAACSB: Reflective ThinkingTher

60、e is for any bond whose time to maturity matches the holding perio、dA) no interest-rate riska large interest-rate riskrate-of-return riskyield-to-maturity riskAnswer: AAACSB: Analytical ThinkingAll bonds that will not be held to maturity have interest rate risk which occurs because of the change in