Financial markets are generally recognized

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1. Financial markets are generally recognized as being semi-strong form efficient, which means:

a. all available information, both public and private, is reflected in current prices

b. all publicly available information is reflected in current prices

c. only all past price information is reflected in current prices

d. there is no opportunity for consistently earning returns on investments

2. What is the present value (aka price) of a 10-year, pure discount bond (zero coupon bond) that pays $1000 at maturity if it is priced to yield 7.75% per year (YTM)?

a. 12,903

b. 1,209

c. 129

d. 474

e. 6,786

Reference no: EM131847967

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