Answer Options:
[A] 1 cup milk, calcium fortified soy milk or yogurt
[B] 1 1/2 oz hard cheese
[C] 1/2 cup shredded cheese
[D] 1 cup cottage cheese
[E] 1/2 cup ice cream
Answer: 1 cup milk, calcium fortified soy milk or yogurt
1 1/2 oz hard cheese
1/2 cup shredded cheese
Question: A zero coupon bond is a bond that pays no interest and is offered (and initially sells) at par. These bonds provide compensation to investors in the form of capital appreciation.
Answer Options:
a. True
b. False
Answer: a. True
Question: A scuba diver at 40 ft below the ocean surface inhales 500 mL of compressed air from a scuba tank at a pressure of 3.20 atm and a temperature of 8°C. What is the final pressure of the air, in atm, if the lung when the gas expands to 1500 mL at a body temperature of 37°C, and the amount of gas does not change?
Answer Options:
[A] 2.4 atm
[B] 1.6 atm
[C] 0.80 atm
[D] 0.53 atm
Answer: 1.18 atm
Question: Which of the following statements regarding a 30-year monthly payment amortized mortgage with a nominal interest rate of 10% is CORRECT?
Answer Options:
a. The monthly payments will increase over time.
b. A larger proportion of the first monthly payment will be interest, and a smaller proportion will be principal, than for the last monthly payment.
c. The total dollar amount of interest being paid off each month gets larger as the loan approaches maturity.
d. The amount representing interest in the first payment would be higher if the nominal interest rate were 7% rather than 10%.
e. Exactly 10% of the first monthly payment represents interest.
Answer: b. A larger proportion of the first monthly payment will be interest, and a smaller proportion will be principal, than for the last monthly payment.
Question: A sample of Ne gas has a pressure of 719 mmHg with an unknown temperature. The same gas has a pressure of 275 mmHg when its temperature is 349 K, with no change in volume or amount of gas. What was the initial temperature, in Kelvin, of the gas?
Answer Options:
[A] 91.24 K
[B] 912.48 K
[C] 27.5 K
[D] 275 K
Answer: 912.48 K
Question: Which of the following statements is CORRECT?
Answer Options:
A. Assume that two bonds have equal maturities and are of equal risk, but one bond sells at par while the other sells at a premium above par. The premium bond must have a lower current yield and a higher capital gains yield than the par bond.
B. A bond’s current yield must always be either equal to its yield to maturity or between its yield to maturity and its coupon rate.
C. If a bond sells at par, then its current yield will be less than its yield to maturity.
D. If a bond sells for less than par, then its yield to maturity is less than its coupon rate.
Answer: A. Assume that two bonds have equal maturities and are of equal risk, but one bond sells at par while the other sells at a premium above par. The premium bond must have a lower current yield and a higher capital gains yield than the par bond.
Question: A gas mixture containing oxygen, nitrogen, and neon exerts a total pressure of 1.00 atm. If helium added to the mixture increases the pressure to 1.80 atm, what is the partial pressure, in atmospheres, of the helium?
Answer Options:
[A] 1.00 atm
[B] 0.80 atm
[C] 1.80 atm
[D] 2.80 atm
Answer: 0.80 atm
Question: A 10-year bond with a 9% annual coupon has a yield to maturity of 8%. Which of the following statements is CORRECT?
a. If the yield to maturity remains constant, the bond’s price one year from now will be higher than its current price.
b. The bond is selling below its par value.
c. The bond is selling at a discount.
d. If the yield to maturity remains constant, the bond’s price one year from now will be lower than its current price.
e. The bond’s current yield is greater than 9%.
Answer Options:
a. False
b. False
c. False
d. True
e. False
Answer: d. True
Question: Which of the following statements is CORRECT?
a. The maturity premiums embedded in the interest rates on U.S. Treasury securities are due primarily to the fact that the probability of default is higher on long-term bonds than on short-term bonds.
b. Reinvestment rate risk is lower, other things held constant, on long-term than on short-term bonds.
c. The pure expectations theory of the term structure states that borrowers generally prefer to borrow on a long-term basis while savers generally prefer to lend on a short-term basis, and as a result, the yield curve is normally upward sloping.
d. If the maturity risk premium were zero and interest rates were expected to decrease in the future, then the yield curve for U.S. Treasury securities would, other things held constant, have an upward slope.
e. Liquidity premiums are generally higher on Treasury than on corporate bonds.
Answer Options:
Answer: d. If the maturity risk premium were zero and interest rates were expected to decrease in the future, then the yield curve for U.S. Treasury securities would, other things held constant, have an upward slope.
Question: The Y-axis intercept of the SML indicates the required return on an individual asset whenever the realized return on an average (b = 1) stock is zero.
a. True
b. False
Answer Options:
Answer: False
Question: According to the “What’s Your Move?” Resource, what is the minimum number of minutes of moderate aerobic activity needed per week for optimal health?
Answer Options:
[A] 90 minutes
[B] 150 minutes
[C] 240 minutes
[D] 300 minutes
Answer: 150 minutes
Question: Sue now has $125. How much would she have after 8 years if she leaves it invested at 8.5% with annual compounding?
Answer Options:
a. $205.83
b. $216.67
c. $228.07
Answer: b. $216.67