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A perpetuity of $63 per year (forever), trades at $969.23. What is the implied interest rate?
1.4.50%
2.5.00%
3.5.50%
4.6.00%
5.6.50%
An 8 year 12% coupon $1,000 face value bond trades at $1,334.88. What’s the bond’s yield-to-maturity (ytm)?
1.6.5%
2.7.0%
3.7.5%
4.8.0%
5.8.5%
Congratulations! You’ve just won $80 million in the Delmarva Lottery. You will be paid $2 million per year for 40 years, with the first payment made today. What is the present value of your winnings. i = 8%.
1.$29.64 million
2.$27.67 million
3.$25.76 million
4.$23.85 million
5.$21.21 million
What’s the present value of an annuity of $3,333 paid at the end of the year for each of the next 10 years? i=6%.
1.$23,143
2.$24,531
3.$25,003
4.$26,431
5.$27,597
Fifteen years ago your great-grand-aunt left you $1,000,000, which you invested at 4%. Every year you’ve taken $62,567 out of the account. Assuming that the interest rate doesn’t change, how many more years can you keep on doing this?
1.6 years
2.8 years
3.10 years
4.11 years
5.13 years
You have an account that pays interest at 12% per year compounded every 4 months. Four years ago you deposited $100 into this account. Assuming that you’ve made no withdrawals, how much is in the account now?
1.$132.58
2.$137.58
3.$142.58
4.$151.17
5.$160.10
You deposited $100,000 in a bank at 5% interest n years ago. You now have $155,132.82 in the bank. What does n equal?
1.6
2.7
3.8
4.9
5.10
Asset D has a return of 5% and no risk. Asset E has an expected return of 22%, and a standard deviation of 47%. What’s the expected return of a portfolio that is composed of 37.5% D and 62.5% E?
1.13.65%
2.13.72%
3.14.11%
4.14.76%
5.15.63%
You will combine stock A and stock B into a portfolio with half the money in each stock. Then you will combine the resulting portfolio 50-50 with a risk free bond. A has an expected return of 8% and a standard deviation of 20%. B has an expected return of 12% and a standard deviation of 28%. The correlation coefficient between A and B is 0.25. The risk free bond has an expected return of 2%. What's the standard deviation of the final portfolio's returns?
1.9.57%
2.10.62%
3.12.91%
4.13.53%
5.15.77%
Assets L and M have perfect negative correlation. You want to form a portfolio consisting only of these two assets that has a standard deviation of 0. L has an expected return of 10% and a standard deviation of 25%. M has an expected return of 20% and a standard deviation of 35%. What is the weight for L in the risk-free portfolio?
1.33.33%
2.41.67%
3.50.00%
4.58.33%
5.66.67%
 
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