Historically has had the smallest standards deviation for its possible outcomes Has the lowest probability of an unfavorable outcome Exhibit 5 Face Value Price of Annual Bond of Bond the Bond Payment A $1,000 $800 $60 B $1,000 $900 $150 C $1,000 $1,000 $250 D $1,000 $1,100 $400 E $1,000 $1,200 $450 Refer to Exhibit 5. The coupon rate for Bond A is __________ . 0.06 percent 0.075 percent 6.0 percent 7.5 percent Refer to Exhibit 5. The yield on Bond A is __________ . 0.06 percent 0.075 percent 6.0 percent 7.5 percent Refer to Exhibit 5. The yield on Bond B is __________ . 16.7 percent 0.17 percent 0.15 percent 15 percent Refer to Exhibit 5. The yield on Bond C is __________ . 0.25 percent 25 percent 2.5 percent 100 percent A tariff is a tax on __________ . Savings Capital goods Imports Land Beth purchased two May live-cattle futures contracts in January. One contract is 40,000 lbs. of live-cattle. It is currently March. In March, Beth can fulfill her contract obligation by __________ . Purchasing tow May live-cattle futures contracts
Historically has had the smallest standards deviation for its possible outcomes Has the lowest probability of an unfavorable outcome Exhibit 5 Bond Face Value of Bond Price of the Bond Annual Payment A $1,000 $800 $60 B $1,000 $900 $150 C $1,000 $1,000 $250 D $1,000 $1,100 $400 E $1,000 $1,200 $450 Refer to Exhibit 5. The coupon rate for Bond A is __________ . 0.06 percent 0.075 percent 6.0 percent 7.5 percent Refer to Exhibit 5. The yield on Bond A is __________ . 0.06 percent 0.075 percent 6.0 percent 7.5 percent Refer to Exhibit 5. The yield on Bond B is __________ . 16.7 percent 0.17 percent 0.15 percent 15 percent Refer to Exhibit 5. The yield on Bond C is __________ . 0.25 percent 25 percent 2.5 percent 100 percent A tariff is a tax on __________ . Savings Capital goods Imports Land Beth purchased two May live-cattle futures contracts in January. One contract is 40,000 lbs. of live-cattle. It is currently March. In March, Beth can fulfill her contract obligation by __________ . Purchasing tow May live-cattle futures contracts
2016%20District%20FBM%20Test%20Bank.docx