1. Consider a convertible bond that is trading at a conversion premium of 20 percent. If the value of the underlying stock rises by 25 percent, the value of the bond will:
　　A.      Rise by less than 25%.
　　B.       Rise by 25%.
　　C.       Rise by more than 25%.
　　D.      Remain unchanged.
　　2. If a cash flow of $10,000 in two years' time has a PV of $8,455, the annual percentage rate, assuming continuous compounding is CLOSEST to:
　　A.      8.13%.
　　B.       8.39%.
　　C.       8.75%.
　　D.      8.95%.
　　3. The current values of a firm's assets and liabilities are 200 million and 160 million respectively. If the asset values are expected to grow by 40 million and liability values by 30 million within a year and if the annual standard deviation of these values is 50 million, the distance from default in the KMV model would be closest to:
　　A.      0.8 standard deviations.
　　B.      1.0 standard deviations.
　　C.      1.2 standard deviations.
　　D.      Cannot not be determined.
　　4. What is the semiannual-pay bond equivalent yield on an annual-pay bond with a yield to maturity of 12.51 percent?
　　A.      12.00%.
　　B.       11.49%.
　　C.       12.51%.
　　D.      12.14%.
　　5. You want to test at the 0.05 level of significance that the mean price of luxury cars is greater than $80,000. A random sample of 50 cars has a mean price of $88,000. The population standard deviation is $15,000. What is the alternative hypothesis?
　　A.      The population mean is greater than or equal to $80,000.
　　B.       The population mean is less than $80,000.
　　C.       The population mean is not equal to $80,000.
　　D.      The population mean is greater than is $80,000.
　　Answers:
　　1. Correct answer: A
　　The convertible bond implicitly gives bondholders a call option on the underlying stock. The delta of this option will vary between 0 (when the option is extremely out of the money) and 1 (when the option is extremely in the money). In this case, the bond is trading at a conversion premium of 20% so the delta must be somewhere between zero and one, and hence the price of the convertible bond will rise by less than the price of the underlying stock.高頓題庫(kù)——全球財(cái)經(jīng)*9題庫(kù)（精題真題、全真模考系統(tǒng)、名師答疑）點(diǎn)擊進(jìn)入“每日一練——免費(fèi)在線測(cè)試”
　　2. Correct answer: B
　　Continuously compounded rate = ln(FV/PV)/N = ln(10000 / 8455) / 2 = 8.39%.
　　3. Correct answer: B
　　Distance from default = (Expected value of assets - Expected value of liabilities) / Standard deviation = (240 - 190)/50 = 1.0.
　　4. Correct answer: D:
　　The semiannual-pay bond equivalent yield of an annual-pay bond = 2 * [(1 + yield to maturity on the annual-pay bond)*0.5 -1] = 12.14%.
　　5. Correct answer: D
　　The alternate hypothesis is the statement which will be accepted if the null hypothesis is proven wrong. Therefore, we make whatever we are trying to test as the alternate hypothesis - in this case that the mean price of luxury cars is greater than $80,000, and the null hypothesis as the opposite (the mean price of luxury cars is less than or equal to $80,000). This problem is a common example of how statisticians establish hypotheses by proving that the opposite (i.e. the null hypothesis) is false.　各位考生想順利通過FRM考試，除了掌握專業(yè)知識(shí)和答題技巧之外，還可以關(guān)注高頓網(wǎng)校的精品網(wǎng)課，高頓網(wǎng)校專業(yè)講師為考生們提供考試復(fù)習(xí)筆記匯總，幫助考生更好地理解FRM知識(shí)，高頓祝各位考生考試大捷！進(jìn)入直播
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