FINA 395 Study Guide - Midterm Guide: Net Present Value, Risk-Free Interest Rate, Current Liability

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12 Feb 2015
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Midterm examination: february 15, 2009 from 10:15 am 12:15 pm. Instructions: make sure that you submit the question sheet with your exam. Also, when you are asked to stop writing at the end do not continue. Return the question sheet with your exam: you are allowed to use a scientific / financial calculator. If the calculator is programmable, the memory should be cleared prior to the exam. You are not allowed to save any stored text in the calculator memory: there will be partial credit for some of the problems. Section a: multiple choice and short answers (35 points) All questions are worth 3. 5 points: a bond issued by abc inc. 3 years ago has 2 years (i. e. 2 coupon payments) remaining till maturity (i. e. it was issued as a 5 year bond). The coupon rate is 8% and interest is paid once a year.