[单项选择]Larry Purcell, an entry-level fixed income analyst at Knowhon & Smeades LLC, was discussing debt covenants with his supervisor, Andy Holzman. During the meeting Purcell made the following statements regarding bond covenants: Statement 1: If a firm violates any of its debt covenants, the company will immediately go into bankruptcy and the creditors of the firm will take over the liquidation of its assets. Statement 2: Debt covenants are important in evaluating a firm’ s credit risk and to better under-stand how the restrictions of the covenants can affect the firm’ s growth prospects and choice of accounting policies. Are statements 1 and 2 .s made by Purcell regarding bond covenants correct Statement 1 Statement 2 ①A. Correct Correct ②B. Incorrect Incorrect ③C. Incorrect Correct

[单项选择]An analyst does research about fixed income products. A increase in expected yield volatility mo.st likely results in a price decrease of a(n)（）
A. Callable bond.
B. Putable bond.
C. Option-free bond.

[单项选择]An analyst does research about income statement and gathers the following information about a company:
·Revenue during this year is $250000
·Cost of goods sold is $150000
·Selling, general, and administrative expense is $25000
·Depreciation expense is $15000
·Interest expense is 5000
The company's operating profit is closest to:（）
A. $55000
B. $60000
C. $75000

[单项选择]An analyst does research about the income elasticity of demand. As income rises from $500 per week to $1500 per week, the quantity demanded for a product increases from 1100 units to 1500 units. the income elasticity of demand is closest to:
A. 0.25
B. 0.31
C. 0.40

[单项选择]An analyst does research about the income statement of a manufacturing company. Which of the following is least likely deducted from gross profit to calculate operating income for the manufacturing company（）
A. Interest expense.
B. Depreciation expense.
C. Research and development cost.

[单项选择]A fixed income portfolio manager is evaluating investments in the mortgage market but is concerned about prepayment risk. The security that will most likely minimize prepayment risk is.（）
A. mortgage passthrough security.
B. a portfolio of interest-only mortgage loans.
C. tranche B of a collateralized mortgage obligation.

[单项选择]An analyst does research on a company's income and cash flow statement. The company classifies interest expense as an operating activity and reports the following information:
·Cash flow from operating activities is $200000
·Capital expenditures is $120000
·Free cash flow to the firm is $90000
·Free cash flow to equity is $70000
·Tax rate is 40%
The company's interest expense is closest to:（）
A. $6000
B. $16667
C. $25000

[单项选择]A fixed income portfolio manager owns a $5 million par value noncallable bond. The bond’s duration is 5.6 and the current market value is $5125000. The dollar duration of the bond is closest to:（）
A. $280000.
B. $287000.
C. $700000.

[单项选择]James Waiters, CFA, is an active fixed income portfolio manager. He manages a portfolio of fixed income securities worth $ 7500000 for an institutional client. Waiters expects a widening yield spread between intermediate and long term securities. He would like to capitalize on his expectations and considers several transactions in a number of different securities. On 01/31/ 2005, Walters expects the yield of the 2-Year Treasury Note to decrease by 10 basis points and the yield of the 30-Year Treasury Bond to increase by 11 basis points. The characteristics of these two fixed income securities are shown in Table 1. Prices are quoted as a percentage of par value.
A. Table 1
B. Security Characteristics
C. 2 -Year T-Note
D. 30 -Year T-Bond
E. Maturity
F. 01/31/07
G. 11/15/34
H. Bid-Ask Spread (basis points)
I. 5.0
J. 5.0
K. Coupon
L. 5.375%
M. 6.125%

[单项选择]Income
Income may be national income and personal income. Whereas national income is defined as the total earned income of all the factors of production--namely, profits, interest, rent, wages, and other compensation for labor, personal income may be defined as total money income received by individuals before personal taxes are paid. National income does not equal GNP (Gross National Product) because the factors of production do not receive payment for either capital consumption allowances or indirect business taxes, both of which are included in GNP. The money put aside for capital consumption is for replacement and thus is not counted as income. Indirect taxes include sales taxes, property taxes, and excise taxes that are paid by businesses directly to the government and so reduce the income left to pay for the factors of production. Three-fourths of national income goes for wages, salaries, and other forms of compensation to employees.
Whereas national income shows
A. the difference between national income and GNP.
B. the difference between national income and personal income.
C. the concept of income.
D. the difference between disposable income and nondisposable income.

[简答题]national income

[简答题]fixed cost

[单项选择]Who is Larry
A. Jane’s new neighbour.
B. The postman.
C. Jane’s boy friend.

[简答题]Tourism Income Multiplier

[简答题]an income tax

[单项选择]An analyst stated that lognormal distributions are suitable for describing distributions of asset prices and that normal distributions are suitable for describing asset returns. Is the analyst’s statement correct with respect to: Lognormal distributions Normal distributions A. No No B. No Yes C. Yes Yes