USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 76

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
*2:1 Split on Stock Z after Close on Jan. 13, 2005
**3:1 Split on Stock X after Close on Jan. 15, 2005
The base date for index calculations is January 13, 2005
-Refer to Exhibit 4.2. Calculate a value weighted index for January 16th if the initial index value is 100.

• A) 123.07
• B) 100.00
• C) 102.31
• D) 111.54
• E) 121.32

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Definitions:

Foreign Bonds

Bonds sold by a foreign borrower but denominated in the currency of the country in which the issue is sold. Thus, a Canadian firm selling bonds denominated in Swiss francs in Switzerland is selling foreign bonds.

Domestic Bonds

Bonds issued within a country's borders and typically denominated in that country's currency.

Market Rate of Interest

The prevailing rate of interest determined by supply and demand in the credit market that borrowers must pay to lenders.

Coupon

The interest rate paid by fixed-income securities, typically expressed as an annual percentage of the face value.