81. An investor will receive $5,000 and $10,000 after one and two years from today respectively. If the interest rate during this period is 10% then what is the present value of this cash flow?
(A) $12000
(B) $12450
(C) $12810
(D) $13705
82. What is volatility if the duration of a bond is 4 years and yield to maturity is 8%?
(A) 3.1%
(B) 3.4%
(C) 3.7%
(D) 4.0%
83. The success of a new company critically depends on
(A) managers
(B) board of directors
(C) shareholders
(D) venture capitalists
84. Companies go public in order to
(A) avoid taxes
(B) reduce management cost
(C) raise more cash
(D) get merge
85. Companies go public with the help of
(A) venture capital firms
(B) underwriters
(C) shareholders
(D) A, B and C
(A) 0
(B) 1
(C) greater than 1
(D) between 0 and 1
87. What is the real rate of interest if nominal rate is 10% and inflation rate is 5%?
(A) 4.3%
(B) 4.8%
(C) 5.3%
(D) 5.8%
88. The relationship between short and long term interest rates is called __________ of interest rates.
(A) yield to maturity
(B) duration
(C) volatility
(D) term structure
89. Financial managers are interested in __________ when see bond market.
(A) yield to maturity
(B) duration
(C) volatility
(D) term structure
(A) bookrunner
(B) venture capitalists
(C) subscribers
(D) angel investors