Multiple choice

1. When a plant manager who is trying to reduce turnover of production workers notices that turnover has decreased by 10 percent four months after he instituted a new training program, at which step in the rational decision-making process is this manager? 

A. Evaluating the results 

B. Identifying alternatives 

C. Recognizing the decision situation 

D. Selecting the best alternative 

2. If the inflation premium for a bond goes up, the price of the bond:

A. is unaffected.

B. goes down.

C. goes up.

D. is unpredictable.

3. The risk premium is likely to be highest for:

A. U.S. government bonds.

B. corporate bonds.

C. gold mining expedition.

D. Either b or c

  4. A ten-year bond pays 11% interest on a $1000 face value annually. If it currently sells for $1,195, what is its approximate yield to maturity?

A. 9.33%

B. 7.94%

C. 12.66%

D. 8.10%