Mei Tekei just celebrated her 22nd birthday. When she is 27, she will receive a $100,000

inheritance. Tekei needs funds for the down payment on a co-op in Manhattan and has found a bank that will give her the present value of her inheritance amount, assuming an 8.0% stated annual interest rate with continuous compounding. Will the proceeds from the bank be sufficient to cover her down payment of $65,000？

A) Yes, Tekei will receive $68,058.

B) No, Tekei will only receive $49,182.

C) No, Tekei will only receive $61,878.

D) Yes, Tekei will receive $67,028.

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更多“Mei Tekei just celebrated her …”相关的问题

第1题

Bond A is now trading at 97.384 with 8 years to maturity and a YTM of 5.38% and duration of 6.45, its price value of a basis point (PVBP) isclosest to:

A. 0.0524

B. 0.0628

C. 0.0779

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第2题

Which of the following is an advantage of the full value approach to measuring the interest rate risk of a bond portfolio relative to the duration/convexity approach?

A. less time consuming.

B. easier to model.

C. more accurate.

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第3题

Which of the following is a shortcoming of the full value approach to measuring the interest rate risk of a bond portfolio, compared to the duration/convexity approach?

A. It ignores the impact of embedded options.

B. It is relatively time consuming.

C. It cannot be used for stress testing.

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第4题

Lei Lee makes the following statement about putable bonds: As yields rise, the price of putable bonds will fall more quickly than comparable option-free bonds (beyond a critical point) due to the decline in value of the embedded put option. Meimei Han adds that as yields fall, the price of putable bonds will climb more quickly than comparable option-free bonds (beyond a critical point) due to the increase in value of the embedded put option. Are their statements about putable bonds correct?

A. Neither statement is correct.

B. Both statements are correct.

C. Only one of the statements is correct.

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