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    Coaching Quantitative

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    Thanh Tuyền
    - The document is a reading on time value of money that includes 21 multiple choice questions. - The questions cover topics like compound interest, present and future value calculations, equivalent annual rates, and perpetuities. - A student named Le Nguyen Thanh Tuyen from class CFA103.14 completed the reading and provided answers to the questions in the form of a mind map for practice and review.

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    © All Rights Reserved
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    Coaching Quantitative

    Uploaded by

    Thanh Tuyền
    15 views6 pages
    - The document is a reading on time value of money that includes 21 multiple choice questions. - The questions cover topics like compound interest, present and future value calculations, equivalent annual rates, and perpetuities. - A student named Le Nguyen Thanh Tuyen from class CFA103.14 completed the reading and provided answers to the questions in the form of a mind map for practice and review.

    Original Title

    COACHING QUANTITATIVE

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    - The document is a reading on time value of money that includes 21 multiple choice questions. - The questions cover topics like compound interest, present and future value calculations, equivalent annual rates, and perpetuities. - A student named Le Nguyen Thanh Tuyen from class CFA103.14 completed the reading and provided answers to the questions in the form of a mind map for practice and review.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    15 views6 pages

    Coaching Quantitative

    Uploaded by

    Thanh Tuyền
    - The document is a reading on time value of money that includes 21 multiple choice questions. - The questions cover topics like compound interest, present and future value calculations, equivalent annual rates, and perpetuities. - A student named Le Nguyen Thanh Tuyen from class CFA103.14 completed the reading and provided answers to the questions in the form of a mind map for practice and review.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 6

    COACHING QUANTITATIVE: READING 1

    Email*
    [email protected]

    Họ và tên*
    Lê Nguyễn Thanh Tuyền

    Lớp*
    CFA103.14

    READING 1: TIME VALUE OF MONEY

    Requirement: Create your own mindmap for this Reading.


    Summarize the Reading in 2 or 3 main sections, each section can be broken into smaller parts.
    You can use Word, PowerPoint or draw on paper and take that picture.
    Name your mindmaps as: [Name - Class]

    Your mindmaps

    Session 1: Question Bank

     
    Question 3: Peter Wallace wants to deposit $10,000 in a bank certificate of deposit
    (CD). Wallace is considering the following banks:

    A. Bank B, 5.90%.
     
    B. Bank C, 5.87%.
    C. Bank A, 5.85%.

     
    Question 4: Nikki Ali and Donald Ankard borrowed $15,000 to help finance their
    wedding and reception. The annual payment loan carries a term of seven years and an
    11% interest rate. Respectively, the amount of the first payment that is interest and the
    amount of the second payment that is principal are approximately:
    A. $1,468; $1,702.
    B. $1,650; $1,468.
     
    C. $1,650; $1,702.

    Câu trả lời đúng


    C. $1,650; $1,702.

     
    Question 5: Fifty years ago, an investor bought a share of stock for $10. If the stock has
    experienced 2% compound annual growth over the period, its price today is closest to:
    A. $39.
    B. $51.
    C. $27.
     N=50
    i/y= 2
    pv=-10
     Fv= 26,9 ~27$

    Section 2: Curriculum

     
    Question 10: The nominal risk-free rate is best described as the sum of the real risk-free
    rate and a premium for:
    A. maturity
    B. liquidity
    C. expected inflation
     
     
    Question 11: Which of the following risk premiums is most relevant in explaining the
    difference in yields between 30-year bonds issued by the US Treasury and 30-year
    bonds issued by a small private issuer?
    A. Inflation
    B. Maturity
    C. Liquidity
     
     
    Question 12: A bank quotes a stated annual interest rate of 4.00%. If that rate is equal
    to an effective annual rate of 4.08%, then the bank is compounding interest:
    A. daily
     
    B. quarterly
    C. semiannually

     
    Question 13: The value in six years of $75,000 invested today at a stated annual
    interest rate of 7% compounded quarterly is closest to:
    A. $112,555
    B. $113,330
    C. $113,733
     
     
    Question 14: A client requires £100,000 one year from now. If the stated annual rate is
    2.50% compounded weekly, the deposit needed today is closest to:
    A. £97,500
    B. £97,532
     
    C. £97,561

     N=52
    i/y=2,5/52
    fv=100000
     Pv = 97,532
    Question 15: For a lump sum investment of ¥250,000 invested at a stated annual rate of
    3% compounded daily, the number of months needed to grow the sum to ¥1,000,000 is
    closest to:
    A. 555
    B. 563
     
    C. 576

    Câu trả lời đúng


    A. 555

     Ngày => năm => tháng


    Question 16: Given a €1,000,000 investment for four years with a stated annual rate of
    3% compounded continuously, the difference in its interest earnings compared with the
    same investment compounded daily is closest to:
    A. €1
    B. €6
     
    C. €455

     
    Question 17: An investment pays €300 annually for five years, with the first payment
    occurring today. The present value (PV) of the investment discounted at a 4% annual
    rate is closest to:
    A. €1,336
     
    B. €1,389
    C. €1,625

    Câu trả lời đúng


    B. €1,389

     
    Question 18: A perpetual preferred stock makes its first quarterly dividend payment of
    $2.00 in five quarters. If the required annual rate of return is 6% compounded quarterly,
    the stock’s present value is closest to:
    A. $31
     
    B. $126
    C. $133

    Câu trả lời đúng


    B. $126

    PV4 = 2/(6%/4)= 2/1,5% = 133,33

    PV0 = 133,33/ (1+1,5%)4 = 126$

     
    Question 19: A saver deposits the following amounts in an account paying a stated
    annual rate of 4%, compounded semiannually:

    A. $30,432
    B. $30,447
    C. $31,677
     
    Câu trả lời đúng
    B. $30,447

     Có thể đổi rate ra EAR rồi dùng CF và NPV để bấm máy
    2nd, cf, nhập các giá trị dòng tiền vào
    Nhập 2nd, npv, I = 4,04
    Question 20: An investment of €500,000 today that grows to €800,000 after six years
    has a stated annual interest rate closest to:
    A. 7.5% compounded continuously
    B. 7.7% compounded daily
    C. 8.0% compounded semiannually
     
     
    Question 21: A sweepstakes winner may select either a perpetuity of £2,000 a month
    beginning with the first payment in one month or an immediate lump sum payment of
    £350,000. If the annual discount rate is 6% compounded monthly, the present value of
    the perpetuity is:
    A. less than the lump sum
    B. equal to the lump sum
    C. greater than the lump sum
     
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