100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Fin 881 Practice Exam Questions And Answers Guaranteed Solutions. $12.99   Add to cart

Exam (elaborations)

Fin 881 Practice Exam Questions And Answers Guaranteed Solutions.

 5 views  0 purchase
  • Course
  • FIN.
  • Institution
  • FIN.

Classify each of the following in terms of their effect on interest rates: 1. Covenants on borrowing become more restrictive 2. Fed increases money supply 3. Total household wealth increases - correct answer 1,2,3 decreases an investor wants to buy 4% more...

[Show more]

Preview 1 out of 4  pages

  • September 7, 2024
  • 4
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • FIN.
  • FIN.
avatar-seller
RealGrades
Fin 881

Classify each of the following in terms of their effect on interest rates:

1. Covenants on borrowing become more restrictive

2. Fed increases money supply

3. Total household wealth increases - correct answer 1,2,3 decreases



an investor wants to buy 4% more goods and services in the future in order to induce her to invest
today. During the investment period prices are expected to rise by 2%. Which statements are true?

1. 4% is desired rfr

2. 6% is nominal rate of interest required

3. 2% is the expected inflation rate over the period - correct answer n-i=r

n-2=4

6=n



you want to have $5mil when you retire in 40 years. You believe you earn 9% per year on your
investment. How much must u invest each year to achieve your goal when you retire? - correct answer
N=40

i=9

PV=0

PMT=?

FV=5mil

14,798



According to the liquidity premium theory of interest rates, - correct answer long-
term spot rates are higher than the average of current and expected future ST interest rates



suppose that the ytm of a 5 year treasury is 2.55% and the ytm of a 4 year treasury is 2.65%. What is the
one year forward rate of return? - correct answer [(1+.0255)^5)/(1+.0265)^4)]-
1=2.15%

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller RealGrades. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $12.99. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

81531 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$12.99
  • (0)
  Add to cart