Stock market value is about to drop

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Reference no: EM131339646

1. If you knew a bond would pay you $50 every year for 10 years and, at the end of the 10 years, you’d also receive a $1,000 payment, how much should you pay to purchase the bond? Assume similar bonds yield 8 percent, and select the value closest to the correct answer.

A. Not more than $336

B. Not more than $463

C. Not more than $733

D. Not more than $799

2. If you believe a stock’s market value is about to drop, you could profit in the decline by _______ the stock.

A. assuming a long position in

B. assuming a bearish outlook on

C. assuming a short position in

D. placing a market order in

Reference no: EM131339646

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