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Explanation it correctly
Q)Which of the following interest rates is usually the highest?
Multiple Choice
-
30-year mortgage rate
-
20-year Treasury bond rate
-
consumer credit-card rate
-
prime rate of banks
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- Which one of the following rate is often taken as the representative of the government borrowing rate a. The 10-year government bond rate b. The reverse repo rate c.The 5-year treasury rate d. The CRRQuestion 1. (5 marks)Is there any standard or easily identifiable debt equity ratio that will maximise the value of a firm ? Why or why not ? Question 2. (5 marks)In general, what is the formula for the present value of an annuity of C dollars per period at a discount rate of r per period, and what is the difference between an ordinary annuity and a perpetuity type annuity? Question 3. (5 marks)Does a loan where interest is compounded monthly but you do not have to make the first loan payment for six months save you money? Explain. Question 4. (5 marks)What is difference between the calculation of compounding interest and simple interest?Vi (H X.) 25) A credit market instrument that pays the owner a fixed coupon payment every year until the maturity date and then repays the face value is called a A) fixed-payment loan. C) simple loan. B) coupon bond. D) discount bond. 25) Pr
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