Question 1
Consider a bond which pays 500 units in 5 years and 1000 units in 10 years. What is the maturity and duration of the bond, respectively?
10 years, 10 years
5 years, 5 years
10 years, 8.33 years
5 years, 8.33 years
Question 2
The table below relates to the economy of Galaland, where the typical consumer’s market basket consists of 2 clothes and 3 burgers.
| Year | Price of a cloth | Price of a burger |
|---|---|---|
| 2017 | Rs 400 | Rs 30 |
| 2018 | Rs 300 | Rs 50 |
| 2019 | Rs 325 | Rs 70 |
If the base year is 2017, then the economy’s inflation rate (as measured by CPI) in 2018 is
-15.73%
-18.67%
15.73%
18.67%
Question 3
Assume Shyam earns Rs. 10000 in period 1 and Rs 12000 in period 2. He spends his earnings on consumption in period 1 and period 2. The prices of consumption in period 1 and period 2 are the same (equal to 1). If prevailing interest rate is 10% then the slope of the intertemporal budget constraint is
1.10
0.91
-0.91
-1.10
22 more questions in this paper
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More on the Corporate Finance Quiz 1 27 Oct 2024 paper
The IIT Madras BS Corporate Finance (Corporate Finance) Quiz 1 paper sat on 27 Oct 2024, in the September 2024 term: 25 questions for 100 marks in 120 minutes. The first 3 questions are below. Sign in with Google — it is free — to see the whole paper with its answers and explanations, in learning mode or as a timed mock test.
| Feature | Corporate Finance Quiz 1 27 Oct 2024 at a glance |
|---|---|
| Term | September 2024 term |
| Subject | Corporate Finance |
| Course code | BSMS3034 |
| Questions | 25 |
| Marks | 100 |
| Duration | 120 min |
| MCQ | 25 |
| Official paper | IIT M DEGREE AN EXAM QDB2 27 Oct 2024 |
| Negative marking | No negative marking. |
| Updated |