1. Which is better to own during a period of declining interestrates in terms of reinvestment rate risk?
a.      a zero coupon bond
b.     a bond with a 13% coupon
c.     a bond with a variable interestrate
d.     a municipal bond
2. When receiving a 10% stock dividend, the owner of 427 sharesof stock will receive
  a.  4.27 shares.
            b.  42.7shares.
            c.  43shares.
            d.  42shares plus cash.
3. A $1,000 par bond with a closing price of 107 in thefinancial press has a dollar price of
a.      $107.00.
b.     $1,070.00.
c.      $1,700.00.
d.     $10,700.
4.
Sam is a 50 share shareholder in MOP Inc. that earned $2million, had 100,000 shares outstanding and a price-earnings ratioof 18. What is the current market value of Sam s investment in MOPInc.?
            a.  $1800
            b.  $360
            c.  $18,000
            d.  $15,000
