Banks and financial statements, Finance Questions

Please answer the following questions.

• What is a bank?
  • a) A debtor
  • b) An individual borrower
  • c) A short-term loan
  • d) An institution offering various financial services to its customers
• Financial statements report the fair market value of a company.
  • a) True
  • b) False
  • c) neither of these
• A three-year bond has 8.0% coupon rate and face value of $1000. If the yield to maturity (YTM) on the bond is 10%, calculate the price of the bond assuming that the bond makes semi-annual coupon interest payments
  • a) $1000
  • b) $1057.54
  • c) $949.24
  • d) $847.96
• All Tutors are required to create and answer one Finance question of their own.
• Ask a question and develop 4 multiple choice responses, 1 correct and 3 incorrect.