A 30-year zero coupon bond has a par value of $1,000 and a required yield of 6%. What is its duration?

• A) 25 years
• B) 30 years
• C) 32 years
• D) 35 years

Price sensitivity is inversely related to a bond’s:

• A) Present value
• B) Future value
• C) Current yield
• D) Coupon rate

The change in bond prices due to a yield change is:

• A) Not related to coupon rate and time to maturity
• B) Directly related to market Yield
• C) Directly related to time to maturity
• D) Inversely related to coupon rate

In which of the following, technical analysis is of NO use?

• A) All of the given options
• B) Weak form efficiency
• C) Strong-form efficiency
• D) Semi-strong form efficiency

What is the relationship between price sensitivity and bond’s coupon rate?

• A) It has a direct relationship
• B) It has no relationship
• C) It has a countless relationship
• D) It has an inverse relationship

Tests are more difficult to conduct for which of the following form?

• A) Weak form efficiency
• B) Semi-strong form efficiency
• C) Strong form efficiency
• D) Weak form & Strong form

Accounting value of a share is known as:

• A) Face value
• B) Book value
• C) Market value
• D) Future value

Bond valuation principal is based upon ____________ of expected cash flows.

• A) Future value
• B) Current value
• C) Present value
• D) Market value

A degree of informational efficiency which states that future stock prices cannot be predicted by analyzing price from the past is known as:

• A) None of the given options
• B) Strong form efficiency
• C) Weak form efficiency
• D) Semi strong form efficiency

Bond is a type of Direct Claim Security whose value is NOT secured by __________.

• A) Fixed assets
• B) Real assets
• C) Intangible assets
• D) Tangible assets

The Dow Jones Industrial Average (DJIA) is an example of which of the following index?

• A) Price weighting index
• B) Capitalization weighting index
• C) Volume based index
• D) None of given options

Which of the following is an average signifying the point in time when the present value of a security is repaid?

• A) Yield to maturity
• B) Convexity
• C) Immunization
• D) Duration

Bond prices are expressed as a percentage of:

• A) Intrinsic value
• B) Par value
• C) Future value
• D) Discount value

Which of the following is NOT a test of semi-strong form efficiency?

• A) Accounting changes
• B) Stock splits
• C) Dividend announcements
• D) Insider transactions

Which of the following is a payment to owners in the form of stocks?

• A) Stock dividend
• B) Stock ticker
• C) Stock flicker
• D) Penny stock

Which of the following index is also known as value weighting?

• A) Capitalization weighting
• B) Price weighting
• C) Equal weighting
• D) Base weighting

Which of the following measures the sensitivity of the asset's price to interest rate movements, expressed as a number of years?

• A) Convexity
• B) Yield to maturity
• C) Immunization
• D) Duration

What is the relationship between price sensitivity and yield to maturity at which the bond is selling?

• A) It has no relationship
• B) It has an inverse relationship
• C) It has a direct relationship
• D) It has a countless relationship

Which of the following index is price weighted?

• A) New York Stock Exchange Composite
• B) Russell 3000 Index
• C) Dow Jones Industrial Average
• D) Standards and Poor’s Index

Which of the following is an accounting value of a share in case a company goes bankrupt?

• A) Present value
• B) Market value
• C) Book value
• D) Intrinsic value