MauryaHub PYQ Practice

ms3034_2025T3_Q1_NA.pdf

Corporate Finance · Quiz 1 · Sep 2025

← Course papers · Start practice / exam

This page contains the reliably extracted subset, not the complete original paper.

Questions and published explanations below are available without starting a test. Some questions may not have a published solution yet.

Question 43 NAT · 3.0 marks

[[IMAGE:731f4822fc25cddd_1_1]]
Source diagram or notation

    A published solution is not available for this question yet.

    Question 45 MCQ · 4.0 marks

    A zero-coupon bond with face value of Rs 5,000 matures in one year. Its price is Rs 4,500. What is the yield of the bond?
    1. 8.42%
    2. 10.00%
    3. 11.11%
    4. 9.00%

    A published solution is not available for this question yet.

    Question 46 MCQ · 4.0 marks

    If you want to double your money at 5% annual rate of interest, how many years will it take?
    1. [[IMAGE:731f4822fc25cddd_2_2]]
      Source diagram or notation
    2. [[IMAGE:731f4822fc25cddd_2_3]]
      Source diagram or notation
    3. [[IMAGE:731f4822fc25cddd_3_4]]
      Source diagram or notation
    4. [[IMAGE:731f4822fc25cddd_3_5]]
      Source diagram or notation

    A published solution is not available for this question yet.

    Question 47 MCQ · 4.0 marks

    You purchased an asset today for Rs 1,000. Suppose the asset earns an annual interest rate of 7% which is continuously compounded. What will be the value of the asset after 5 years (Rounded off to nearest integer)?
    1. Rs 1350
    2. Rs 1402
    3. Rs 1419
    4. Rs 1500

    A published solution is not available for this question yet.

    Question 48 MCQ · 4.0 marks

    Which rule helps an entrepreneur with limited capital get back invested money fastest in high interest environments?
    1. NPV
    2. Payback
    3. IRR
    4. Profitability Index

    A published solution is not available for this question yet.

    Question 49 MCQ · 4.0 marks

    If nominal GDP doubles, but real GDP remains unchanged, this means
    1. Only prices increased.
    2. Only quantity increased.
    3. Both prices and quantity increased.
    4. Neither prices nor quantity increased.

    A published solution is not available for this question yet.

    Question 50 MCQ · 4.0 marks

    The PVC stock is trading at Rs 300 today. PVC is expected to pay a dividend of Rs 20 per share next year. If the growth rate of the PVC dividend is 3% every year and the appropriate rate of return is 10% per year, then according to the Gordon growth model
    1. The PVC stock is underpriced, and an investor should buy PVC shares.
    2. The PVC stock is overpriced, and an investor should buy PVC shares.
    3. The PVC stock is underpriced, and an investor should sell PVC shares.
    4. The PVC stock is overpriced, and an investor should sell PVC shares.

    A published solution is not available for this question yet.

    Question 51 MCQ · 4.0 marks

    A bond pays 200 units in 1 year and 200 units in 5 years. What is the (simple) duration of the bond?
    1. 5 years
    2. 3 years
    3. 2.5 years
    4. 1 year

    A published solution is not available for this question yet.

    Question 52 MCQ · 4.0 marks

    [[IMAGE:731f4822fc25cddd_4_6]]
    Source diagram or notation
    1. 0.008
    2. 0.128
    3. 0.200
    4. 0.512

    A published solution is not available for this question yet.

    Question 53 MCQ · 4.0 marks

    If expected inflation equals nominal interest rate, then real interest rate is
    1. Positive
    2. Negative
    3. Zero
    4. One

    A published solution is not available for this question yet.

    Question 54 MCQ · 4.0 marks

    An upward sloping yield curve shows:
    1. Short-term rates are higher than long-term rates.
    2. Short-term rates are lower than long-term rates.
    3. Maturity is irrelevant.
    4. It is one of the indications of upcoming recession.

    A published solution is not available for this question yet.

    Question 55 MCQ · 4.0 marks

    Suppose there is a new project that demands an investment of Rs 10 lakh today and promises to pay off after two years. If the estimated internal rate of return of the project is 12%, then what amount is paid off on the payment date (after two years)?
    1. Rs 12 lakh
    2. Rs 12.400 lakh
    3. Rs 12.544 lakh
    4. Rs 12.838 lakh

    A published solution is not available for this question yet.

    Question 56 MCQ · 4.0 marks

    During the cleaning of house, you find an old sword that belonged to your grandfather. Your grandfather purchased the sword 60 years ago for Rs 60. You go to the market and find out that the current value of the sword is Rs 9,000. What is the annualized rate of return that the sword has earned?
    1. 60%
    2. 10.87%
    3. 8.71%
    4. 2.50%

    A published solution is not available for this question yet.

    Question 57 MCQ · 4.0 marks

    ABC Corporation is looking to invest in one new project, and they have three
    1. 1.09
    2. 1.19
    3. 1.88
    4. 0.88

    A published solution is not available for this question yet.

    Question 58 MCQ · 4.0 marks

    ABC Corporation is looking to invest in one new project, and they have three
    1. Project-A
    2. Project-B
    3. Project-C
    4. None of these

    A published solution is not available for this question yet.

    Question 59 MCQ · 4.0 marks

    Assume there are two periods and prices of consumption good are the same (and equal to 1) in both periods. You earn Rs 10,000 in period 1 and Rs 12,000 in period 2. In each of the two periods, your spending is equal to earnings in that period. The slope of intertemporal budget constraint is −1.12, then what is the prevailing interest rate?
    1. 10%
    2. 12%
    3. 15%
    4. Insufficient information

    A published solution is not available for this question yet.

    Question 60 MCQ · 4.0 marks

    What is the present value of an annuity that pays Rs 1,000 for next 25 years (beginning next year) and faces a cost of capital of 5%? (Nearest integer value)
    1. Rs 25,000
    2. Rs 18,394
    3. Rs 14,094
    4. Rs 12,500

    A published solution is not available for this question yet.

    Question 61 MCQ · 4.0 marks

    A typical consumer basket in the economy of Pangia Island consists of 1 unit of clothes, 3 units of food and 2 units of fuel. In 2022, the price of clothes was Rs 200 per unit, the price of food was Rs 50 per unit and the price of fuel was Rs 75 per unit. In 2023, the price of clothes was Rs 180 per unit, the price of food was Rs 70 per unit and the price of fuel was Rs 80 per unit. In 2024, the price of clothes was Rs 220 per unit, the price of food was Rs 80 per unit and the price of fuel was Rs 100 per unit. Considering 2022 as base year, what was the CPI in 2024? (Note: CPI in base year =100)
    1. 100
    2. 110
    3. 120
    4. 132

    A published solution is not available for this question yet.

    Question 62 MCQ · 4.0 marks

    A typical consumer basket in the economy of Pangia Island consists of 1 unit of clothes, 3 units of food and 2 units of fuel. In 2022, the price of clothes was Rs 200 per unit, the price of food was Rs 50 per unit and the price of fuel was Rs 75 per unit. In 2023, the price of clothes was Rs 180 per unit, the price of food was Rs 70 per unit and the price of fuel was Rs 80 per unit. In 2024, the price of clothes was Rs 220 per unit, the price of food was Rs 80 per unit and the price of fuel was Rs 100 per unit. Considering 2022 as base year, what was the annual inflation rate in 2024 with respect to 2023?
    1. 10%
    2. 16%
    3. 20%
    4. 32%

    A published solution is not available for this question yet.

    Question 63 MCQ · 4.0 marks

    Manish runs a private school in his town. He wants to start a bus service for the students. He goes to the bank and asks for a loan of Rs 8,00,000. The bank official tells him that the loan will have a monthly interest rate of 3% for 10 years. What would be the equated monthly instalment (EMI) that he will be paying each month for the next 10 years, beginning next month (Round off to nearest integer)?
    1. Rs 12,000
    2. Rs 22,746
    3. Rs 24,711
    4. Rs 28,437

    A published solution is not available for this question yet.

    Question 64 MCQ · 4.0 marks

    Consider a 20-year zero-coupon bond that promises to pay 1000 units after 20 years. The annualized interest rate is 2.5%. Suppose due to geopolitical tensions, the prevailing interest rate increases by 10 basis points to 2.6%. What would be the change in the value of the bond?
    1. increases by 1.93%
    2. decreases by 1.93%
    3. increases by 1.20%
    4. decreases by 1.20%

    A published solution is not available for this question yet.

    Question 65 MCQ · 4.0 marks

    On investigating the Indian yield curve, you find that annualized rate on 1-year bond (expiring in September 2026) is 4% and the annualized rate on 2-year bond (expiring in September 2027) is 4.5%. What would be the 1-year interest rate from September 2026 to September 2027?
    1. 4.28%
    2. 4.50%
    3. 4.72%
    4. 5.00%

    A published solution is not available for this question yet.