(Get Answer) – FIN 534 Week 4 Quiz 3 (Strayer university) FIN 534 Week 4 Quiz 3FIN 534 Week 4 Quiz 3 (Strayer university)FIN 534 Week 4 quiz 3FIN 534 Week 4 quiz 3Question 1 Whichof the following statements is CORRECT?Question2 Whichof the following statements regarding a 30-year monthly payment amortizedmortgage with a nominal interest rate of 10% is CORRECT?Question3 AU.S. Treasury bond will pay a lump sum of $1,000 exactly 3 years fromtoday. The nominal interest rate is 6%,semiannual compounding. Which of thefollowing statements is CORRECT?Question4 Youplan to analyze the value of a potential investment by calculating the sum ofthe present values of its expected cash flows.Which of the following would increase the calculated value of theinvestment?Question5 Youare considering two equally risky annuities, each of which pays $5,000 per yearfor 10 years. Investment ORD is anordinary (or deferred) annuity, while Investment DUE is an annuity due. Which of the following statements is CORRECT?Question6 Whichof the following statements regarding a 30-year monthly payment amortizedmortgage with a nominal interest rate of 10% is CORRECT?Question7 A$150,000 loan is to be amortized over 7 years, with annual end-of-yearpayments. Which of these statements isCORRECT?Answer Question8 Whichof the following statements is CORRECT?Question9 Whichof the following investments would have the highest future value at the end of10 years? Assume that the effectiveannual rate for all investments is the same and is greater than zero.Answer Question10 Whichof the following statements is CORRECT?Question11 Whichof the following statements regarding a 15-year (180-month) $125,000,fixed-rate mortgage is CORRECT? (Ignoretaxes and transactions costs.)Question12 Whichof the following bank accounts has the highest effective annual return?Question13 AU.S. Treasury bond will pay a lump sum of $1,000 exactly 3 years fromtoday. The nominal interest rate is 6%,semiannual compounding. Which of thefollowing statements is CORRECT?Question14 Whichof the following statements is CORRECT? Question 15 Youare considering two equally risky annuities, each of which pays $5,000 per yearfor 10 years. Investment ORD is anordinary (or deferred) annuity, while Investment DUE is an annuity due. Which of the following statements is CORRECT?Answer Question16 AmramInc. can issue a 20-year bond with a 6% annual coupon. This bond is not convertible, is notcallable, and has no sinking fund. Alternatively,Amram could issue a 20-year bond that is convertible into common equity, may becalled, and has a sinking fund. Which ofthe following most accurately describes the coupon rate that Amram would have topay on the convertible, callable bond?Question17 ATreasury bond has an 8% annual coupon and a 7.5% yield to maturity. Which of the following statements is CORRECT?Answer Question 18 Whichof the following bonds has the greatest interest rate price risk?Question19 Whichof the following statements is CORRECT?Question20 Whichof the following statements is CORRECT?Question21 A15-year bond with a face value of $1,000 currently sells for $850. Which of the following statements is CORRECT?Question22 Whichof the following statements is CORRECT?Question23 Assumethat all interest rates in the economy decline from 10% to 9%. Which of the following bonds would have thelargest percentage increase in price?Question24 A12-year bond has an annual coupon rate of 9%.The coupon rate will remain fixed until the bond matures. The bond has a yield to maturity of 7%. Which of the following statements is CORRECT?Answer Question25 A10-year bond pays an annual coupon, its YTM is 8%, and it currently trades at apremium. Which of the following statements is CORRECT?Question26 Whichof the following statements is CORRECT?Answer Question27 Whichof the following statements is CORRECT?Question28 A10-year bond with a 9% annual coupon has a yield to maturity of 8%. Which of the following statements is CORRECT?Question29 A10-year corporate bond has an annual coupon of 9%. The bond is currently selling at par($1,000). Which of the followingstatements is NOTCORRECT?Question30 Whichof the following statements is CORRECT?