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

86. If beta of a stock is __________ then it tends to amplify the overall market movement.

(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

90. Underwriters are also called

(A) bookrunner
(B) venture capitalists
(C) subscribers
(D) angel investors

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