Question 8
0.008
0.128
0.200
0.512
Corporate Finance Quiz 1 26 Oct 2025 — Question 8
Show answer
Correct answer
0.200
Question 8 of 25 in the IIT Madras BS Corporate Finance (Corporate Finance) Quiz 1 paper sat on 26 Oct 2025, in the September 2025 term (IIT M DEGREE AN EXAM QDB2 26 Oct 2025). It carries 4 marks.
More questions from this paper
- A zero-coupon bond with face value of Rs 5,000 matures in one year. Its price is Rs 4,500. What is the yield of the bon…
- If you want to double your money at 5% annual rate of interest, how many years will it take?
- You purchased an asset today for Rs 1,000. Suppose the asset earns an annual interest rate of 7% which is continuously …
- Which rule helps an entrepreneur with limited capital get back invested money fastest in high interest environments?
- If nominal GDP doubles, but real GDP remains unchanged, this means
- The PVC stock is trading at Rs 300 today. PVC is expected to pay a dividend of Rs 20 per share next year. If the growth…
- A bond pays 200 units in 1 year and 200 units in 5 years. What is the (simple) duration of the bond?
- If expected inflation equals nominal interest rate, then real interest rate is
- An upward sloping yield curve shows:
- Suppose there is a new project that demands an investment of Rs 10 lakh today and promises to pay off after two years. …
- During the cleaning of house, you find an old sword that belonged to your grandfather. Your grandfather purchased the s…
- ABC Corporation is looking to invest in one new project, and they have three options: Project-A is expected to generate…
- ABC Corporation is looking to invest in one new project, and they have three options: Project-A is expected to generate…
- Assume there are two periods and prices of consumption good are the same (and equal to 1) in both periods. You earn Rs …
- What is the present value of an annuity that pays Rs 1,000 for next 25 years (beginning next year) and faces a cost of …
- A typical consumer basket in the economy of Pangia Island consists of 1 unit of clothes, 3 units of food and 2 units of…
- A typical consumer basket in the economy of Pangia Island consists of 1 unit of clothes, 3 units of food and 2 units of…
- Manish runs a private school in his town. He wants to start a bus service for the students. He goes to the bank and ask…
- Consider a 20-year zero-coupon bond that promises to pay 1000 units after 20 years. The annualized interest rate is 2.5…
- On investigating the Indian yield curve, you find that annualized rate on 1-year bond (expiring in September 2026) is 4…
- In the economy of Moldova, the nominal GDP is accounted as 15,000 units and the real GDP is accounted as 12,000 units i…
- Which of the following is not a characteristic of a bond?
- For a simple perpetuity, its present value increases if
- Which of the following is a reason for preferring short-term bonds over long-term bonds?