1. You make 10 Quarterly deposits of $1000 each in a bank, starting 2 years from now. What is the balance of your account 10 years from now if the interest rate is 12% per year, compounded quarterly?
A. $22622
B. $28563
C. $19321
D. $26142
2. Many consumers associate high prices with high quality. In view of this assumption, some of the cosmetics companies use the _____ strategy to price their products.
a. penetration pricing
b. discounting
c. price dipping
d. symbolic/prestige pricing
3. Company has 60,000 bonds with 30-year life outstanding, 15 years until maturity. The bonds carry a 10 percent semi-annnual coupon, and are currently selling for $874.78. FInd cost of debt.