题目内容

James Waiters, CFA, has collected data on the three year term structure of interest rates, shown in the table below as bond equivalent yields.

A. Term Structure of Interest Rates
B. Year
C. Spot Rate
D. 0.50
E. 5.5227%
F. 1.00
G. 5.5537%
H. 1.50
I. 5.5444%
J. 2.00
K. 5.5205%
L. 2.50
M. 5.5114%
N. 3.00
O. 5.5156%

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Which of the following is NOT among the three most important factors in valuing a venture capital investment

A.

A. Expected payoff at exit.

B.
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C.
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At a market rate of 7 percent, a $1000 callable par value bond is priced at $910, while a similar bond that is non-callable is priced at $960. What is the value of the embedded call option

A.

A. $40.

B.
B. $50.

C.
C. $30.

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