1、第5单元 金融考试题 西南财经大学天府学院Financial Markets and Institutions, 7e (Mishkin)Chapter 5 How Do Risk and Term Structure Affect Interest Rates? Multiple Choice1) The term structure of interest rates isA) the relationship among interest rates of different bonds with the same risk and maturity.B) the structure o
2、f how interest rates move over time.C) the relationship among the terms to maturity of different bonds from different issuers.D) the relationship among interest rates on bonds with different maturities but similar risk.Answer: D2) The risk structure of interest rates isA) the structure of how intere
3、st rates move over time.B) the relationship among interest rates of different bonds with the same maturity.C) the relationship among the terms to maturity of different bonds.D) the relationship among interest rates on bonds with different maturities.Answer: B3) Which of the following long-term bonds
4、 should have the lowest interest rate?A) Corporate Baa bondsB) . Treasury bondsC) Corporate Aaa bondsD) Municipal bondsAnswer: D4) Which of the following long-term bonds should have the highest interest rate?A) Corporate Baa bondsB) . Treasury bondsC) Corporate Aaa bondsD) Municipal bondsAnswer: A5)
5、 The risk premium on corporate bonds becomes smaller ifA) the riskiness of corporate bonds increases.B) the liquidity of corporate bonds increases.C) the liquidity of corporate bonds decreases.D) the riskiness of corporate bonds decreases.E) either B or D of the above occur.Answer: E6) Bonds with re
6、latively low risk of default are calledA) zero coupon bonds.B) junk bonds.C) investment-grade bonds.D) none of the above.Answer: C7) Bonds with relatively high risk of default are calledA) Brady bonds.B) junk bonds.C) zero coupon bonds.D) investment-grade bonds.Answer: B8) A corporation suffering bi
7、g losses might be more likely to suspend interest payments on its bonds, therebyA) raising the default risk and causing the demand for its bonds to rise.B) raising the default risk and causing the demand for its bonds to fall.C) lowering the default risk and causing the demand for its bonds to rise.
8、D) lowering the default risk and causing the demand for its bonds to fall.Answer: B9) (I) If a corporation suffers big losses, the demand for its bonds will rise because of the higher interest rates the firm must pay. (II) The spread between the interest rates on bonds with default risk and default-
9、free bonds is called the risk premium.A) (I) is true, (II) false.B) (I) is false, (II) true.C) Both are true.D) Both are false.Answer: B10) Holding everything else constant, if a corporation begins to suffer large losses, then the default risk on its bonds will _ and the expected return on those bon
10、ds will _.A) increase: increaseB) decrease; increaseC) increase; decreaseD) decrease; decreaseAnswer: C11) Holding everything else the same, if a corporations earnings rise, then the default risk on its bonds will _ and the expected return on those bonds will _.A) increase; decreaseB) decrease; decr
11、easeC) increase; increaseD) decrease; increaseAnswer: D12) If a corporation begins to suffer large losses, then the default risk on its bonds will _ and the equilibrium interest rate on these bonds will _.A) increase; decreaseB) decrease; increaseC) increase; increaseD) decrease; decreaseAnswer: C13
12、) If a corporations earnings rise, then the default risk on its bonds will _ and the equilibrium interest rate on these bonds will _.A) increase; decreaseB) decrease; decreaseC) increase; increaseD) decrease; increaseAnswer: B14) When the default risk on corporate bonds decreases, other things equal
13、, the demand curve for corporate bonds shifts to the _ and the demand curve for Treasury bonds shifts to the _.A) right; rightB) right; leftC) left; leftD) left; rightAnswer: B15) (I) An increase in default risk on corporate bonds shifts the demand curve for corporate bonds to the right. (II) An inc
14、rease in default risk on corporate bonds shifts the demand curve for Treasury bonds to the left.A) (I) is true, (II) false.B) (I) is false, (II) true.C) Both are true.D) Both are false.Answer: D16) (I) An increase in default risk on corporate bonds shifts the demand curve for corporate bonds to the
15、left. (II) An increase in default risk on corporate bonds shifts the demand curve for Treasury bonds to the right.A) (I) is true, (II) false.B) (I) is false, (II) true.C) Both are true.D) Both are false.Answer: C17) The spread between interest rates on low-quality corporate bonds and U.S. government
16、 bonds _ during the Great Depression.A) was reversedB) narrowed significantlyC) widened significantlyD) did not changeAnswer: C18) As a result of the subprime collapse, the demand for low -quality corporate bonds _, the demand for high-quality Treasury bonds _, and the risk spread _.A) increased; de
17、creased; was unchangedB) decreased; increased; increasedC) increased; decreased; decreasedD) decreased; increased; was unchangedAnswer: B19) Moodys and Standard and Poors are agencies thatA) help investors collect when corporations default on their bonds.B) advise municipal bond issuers on the tax e
18、xempt status of their bonds.C) produce information about the probability of default on corporate bonds.D) maintain liquid markets for corporate bonds.Answer: C20) If Moodys or Standard and Poors downgrades its rating on a corporate bond, the demand for the bond _ and its yield _.A) increases; decrea
19、sesB) decreases; increasesC) increases; increasesD) decreases; decreasesAnswer: B21) Corporate bonds are not as liquid as government bonds becauseA) fewer bonds for any one corporation are traded, making them more costly to sell.B) the corporate bond rating must be calculated each time they are trad
20、ed.C) corporate bonds are not callable.D) all of the above.E) only A and B of the above.Answer: A22) (I) The risk premium widens as the default risk on corporate bonds increases. (II) The risk premium widens as corporate bonds become less liquid.A) (I) is true, (II) false.B) (I) is false, (II) true.
21、C) Both are true.D) Both are false.Answer: C23) When the corporate bond market becomes less liquid, other things equal, the demand curve for corporate bonds shifts to the _ and the demand curve for Treasury bonds shifts to the _.A) right; rightB) right; leftC) left; leftD) left; rightAnswer: D24) Wh
22、en the corporate bond market becomes more liquid, other things equal, the demand curve for corporate bonds shifts to the _ and the demand curve for Treasury bonds shifts to the _.A) right; rightB) right; leftC) left; leftD) left; rightAnswer: B25) (I) If a corporate bond becomes less liquid, the dem
23、and for the bond will fall, causing the interest rate to rise. (II) If a corporate bond becomes less liquid, the demand for Treasury bonds does not change.A) (I) is true, (II) false.B) (I) is false, (II) true.C) Both are true.D) Both are false.Answer: A26) (I) If a corporate bond becomes less liquid
24、, the interest rate on the bond will fall. (II) If a corporate bond becomes less liquid, the interest rate on Treasury bonds will fall.A) (I) is true, (II) false.B) (I) is false, (II) true.C) Both are true.D) Both are false.Answer: B27) If income tax rates were lowered, thenA) the interest rate on m
25、unicipal bonds would fall.B) the interest rate on Treasury bonds would rise.C) the interest rate on municipal bonds would rise.D) the price of Treasury bonds would fall.Answer: C28) If income tax rates rise, thenA) the prices of municipal bonds will fall.B) the prices of Treasury bonds will rise.C)
26、the interest rate on Treasury bonds will rise.D) the interest rate on municipal bonds will rise.Answer: C29) An increase in marginal tax rates would likely have the effect of _ the demand for municipal bonds and _ the demand for U.S. government bonds.A) increasing; increasingB) increasing; decreasin
27、gC) decreasing; increasingD) decreasing; decreasingAnswer: B30) A decrease in marginal tax rates would likely have the effect of _ the demand for municipal bonds and _ the demand for U.S. government bonds.A) increasing; increasingB) increasing; decreasingC) decreasing; increasingD) decreasing; decre
28、asingAnswer: C31) Which of the following statements are true?A) Because coupon payments on municipal bonds are exempt from federal income tax, the expected after-tax return on them will be higher for individuals in higher income tax brackets.B) An increase in tax rates will increase the demand for m
29、unicipal bonds, lowering their interest rates.C) Interest rates on municipal bonds will be lower than on comparable bonds without the tax exemption.D) All of the above are true statements.E) Only A and B are true statements.Answer: D32) Which of the following statements are true?A) Because coupon pa
30、yments on municipal bonds are exempt from federal income tax, the expected after-tax return on them will be higher for individuals in higher income tax brackets.B) An increase in tax rates will increase the demand for Treasury bonds, lowering their interest rates.C) Interest rates on municipal bonds
31、 will be higher than on comparable bonds without the tax exemption.D) Only A and B are true statements.Answer: A33) When a municipal bond is given tax-free status, the demand for municipal bonds shifts _, causing the interest rate on the bond to _.A) leftward; riseB) leftward; fallC) rightward; riseD) r
