GM_Q2_B

What is the period of deferral if monthly payment of Php 2,000.00 for 8 years will start 6 months from now?

• 4

• 5

• 6

• 9

What is the period of deferral if semi-annual payments of Php 12,000.00 for 10 years that will start 5 years from now?

• 5

• 9

• 10

• 11

What is the present value of 10 semi-annual payments of Php 2,000.00 each if the first payment is due at the end of 3 years and money is worth 8% compounded semi-annually?

• Php 10,333.31

• Php 13,331.13

• Php 15,841.12

• Php 17,332.25

What is the period of deferral if semi-annual payments of Php 5,000.00 for 13 years that will start 4 years from now?

• 7

• 8

• 9

• 14

Melwin avail a loan from the bank that gave him an option to pay Php 20,000.00 monthly for 2 years. The first payment is due after 4 months. If the interest rate is 10% converted monthly, find the periods in deferral.

• 1

• 2

• 3

• 12

It is the money that is earned in trade or business after paying the costs of producing and selling goods and services.

• stock

• profit

• bond

• investment

What is the other name for a bond's interest rate?

• par value

• face value

• coupon rate

• principal

A form of equity instrument or raising money by allowing investors to be part owners of the company.

• bond

• stock

• dividend

• market value

Several years ago, Company A issued bonds to raise funds so that it could buy equipment. Those bonds were purchased by the bank of the east. However, the bank of the east as decided that it doesn't want to have any assets in the form of bonds, so it is selling of all the bonds that it owns. Which of the following is most likely to be the result of this action?

• The default risk of the bonds will increase

• Bond prices will increase

• The face value of the bonds will decrease

• Interest rate will increase

The interest rate the bond issuer use in computing the interest payment, usually expressed in percent.

• Coupon date

• Dividend

• Coupon rate

• Maturity date