Question 1. Explain what a yield curve is, and the three different types of curves.
Explain Expectations Theory, and give an example.
Question 2. Explain Liquidity Preference Theory, and give an example.
Question 3. Explain Market Segmentation Theory, and give an example.
Question 4. What is the I-Bond and why was it offered by the USD of Treasury?
Question 5. Why do financial managers prefer to calculate values of projects or investments in present values?
Question 6. What is meant by "the present value of a future amount"?
Question 7. How would you calculate that?
Question 8. What is the difference between simple and compound interest?
Question 9. What is the difference between simple and compound interest?
Question 10. What is the difference between an annuity and an annuity due, and which always has the greater future value, and why?
Question 11. What is the impact of international assets on a portfolio?
Is there more or less risk?
Question 12. Explain the term Beta in determining risks in a portfolio or security.
Question 13. What is an IPO? Give an example.
Question 14. What does a firm have to do, legally before "going public"?
Question 15. What are the differences between debt and equity capital?
Question 16. What are the differences between common and preferred stock? Which would you prefer and why?
Question 17. What risks do common stockholders take that other suppliers of long-term capital do not?