FIN 401 Study Guide - Final Guide: Dutch Auction, Risk-Free Interest Rate, Underwriting
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Final exam december 14, 2012 - solution. Aids allowed: none, except for an 8"1/2 by 11 double sided cheat sheet and a calculator. The exam is out of 50 marks, there are 50 mc questions. Answer all mc questions on the scan sheet. What is the bond"s yield to maturity: 3. 750, 7. 494, 7. 500, 7. 666, none of the above. Solution: n = 20, pmt = 40, pv = -1034. 74, fv = 1000, compute i = 3. 75% ytm = 7. 5: you"ve been offered an investment that will double your money in 10 years. What rate of return are you being offered: 5. 59, 7. 18, 20, 100, 200% Solution: pv = -x, fv = 2x, n = 10, compute i = 7. 18: you are considering an investment with the following cash flows. Your required return is 10%, and you require a payback of three years and a discounted payback of four years.
