1. With respect to the internal rate of return on an investment (IRR):
    1. It is the weighted average term to maturity of a bond's cash flows.
    2. It strips out the cash flow bias for an investment's return.
    3. It is a simple period return.
    4. It is a dollar weighted return which assumes reinvestment at the IRR to maturity.
  2. All of the following are forms of dollar weighted return, except:
    1. Yield to Maturity.
    2. Yield to Call.
    3. Internal Rate of Return.
    4. None of the foregoing.
  3. The current yield of Varity Corp. 9.07 of 20 is:
    1. 9.07%
    2. 8.9% if Varity's current market value is 102
    3. 10.4% if Varity trades presently at 874
    4. a & c
    5. b & c
  4. Taxable Equivalent Yield may be defined as:
    1. The different between a tax-exempt yield and a taxable yield.
    2. The rate at which the investor would be indifferent to the tax-exempt yield.
    3. The yield obtained by "grossing up" the tax-exempt yield by the reciprocal of the investor's marginal tax bracket.
    4. Both b & c
    5. None of the foregoing.
  5. The nominal return on an investment is 11.34%. The real return is:
    1. The nominal return adjusted for inflation.
    2. 7.57% using a 3% inflation assumption.
    3. 7.57% using a 3.5% inflation assumption.
    4. Both a & c


Sample Questions 6 - 10

Related Articles
  1. Investing

    Understanding the Different Types of Bond Yields

    Any investor, private or institutional, should be aware of the diverse types and calculations of bond yields before an actual investment.
  2. Investing

    Bond Yields: Current Yield And YTM

    A bond's current yield, also called "bond yield," is the interest it pays annually divided by the bond's price. A stock's current yield, also called "dividend yield," is the sum of its annual ...
  3. Small Business

    Calculating the Internal Rate of Return Using Excel

    The internal rate of return on investments is explained and illustrated in different investment scenarios.
  4. Investing

    4 Types Of Money Market Yields

    We give you four equations to help figure out the yields on your investments.
  5. Investing

    Interest Rates, Inflation and the Bond Market

    Interest rates, bond prices and inflation all have an impact on one another.
  6. Managing Wealth

    Finding The Best Yields

    Using yields to supplement earnings can mean big bucks, with the right strategy.
  7. Investing

    How Bond Yields Could Topple the Stock Market

    Bond yields have reached a crucial point since the election that could be bad news for the stock market.
  8. Investing

    Calculating Yield to Worst

    Yield to worst is the lowest possible yield on a bond that may be called in the future.
  9. Investing

    Yield Investing: Dividend, Earnings And FCF

    There are numerous ways to value investments, and many investors prefer a specific valuation method. Yield investing is one way to value a stock by comparing the current price to various factors. ...
  10. Investing

    Calculating Bond Equivalent Yield

    The bond equivalent yield calculates the semi-annual, quarterly or monthly yield on a discount bond or note.
Frequently Asked Questions
  1. Can I fund a Traditional IRA, a 403(b) or a Roth IRA using pension money?

    Can pension money be used to fund other retirement accounts?
  2. What are unregistered securities or stocks?

    Before securities, like stocks, bonds and notes, can be offered for sale to the public, they first must be registered with ...
  3. How does a company move from an OTC market to a major exchange?

    The over-the-counter market is not an actual exchange like the NYSE or Nasdaq. Instead, it is a network of companies that ...
  4. Can I roll a traditional IRA into a 529 college account for my grandchild?

    The short answer: Not without paying taxes. But as with much of the tax code, there are various nuisances and exemptions ...
Trading Center