# Corporate Finance Trivia Quiz! MCQ

9 Questions | Total Attempts: 102

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• 1.
What is the principal amount of a bond that is repaid at the end of the loan term called?
• A.

Face Value

• B.

Coupon

• C.

Accrued Price

• D.

Dirty Price

• E.

Market Price

• 2.
The value of an investment after one or more times periods is called the:
• A.

Present Value

• B.

Discount rate

• C.

Future Value

• D.

Compounding

• 3.
Compound interest is defined as the interest earned.
• A.

Only on the initial investment

• B.

On both the initial principal and all interest earned and reinvested in prior periods

• C.

Timing of the annuity payments

• 4.
By definition, a bank that pays simple interest on a savings account will pay interest.
• A.

Only on the initial investment

• B.

Only at the beginning of the investment period

• 5.
The process of adding the interest earned on investment to the original investment in order to earn more interest is calling.
• A.

Discounting

• B.

Compounding

• C.

Future Value

• 6.
Which one of the following is the correct formula for the future value of a lump sum invested today?
• A.

FV =PV/(1+r)t

• B.

Fv=PV x(1+r)t

• C.

PV=FV/(1+r)t

• 7.
The current value of future cash flows discounted at the appropriate discount rate is called:
• A.

Future value

• B.

Present value

• C.

Discount rate

• 8.
The interest rate used to compute the present value of a future cash flow is called:
• A.

Discount rate

• B.

Future value

• C.

Present value

• D.

Discounting

• 9.
Which one of the following is the correct formula for computing the present value of a lump sum to be received sometime in the future.
• A.

Fv=pv/(1+r)t

• B.

Pv=fv/(1+r)t

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