Mr. Smith has a 10-year mortgage of $375,000 with an interest rate of 6.5% APR compounded semi-annually. Mortgage payments are made at the beginning of each month. What is the balance remaining on this mortgage in 5 year's time?
Choose one answer.
a. $187,500
b. $215,325
c. $216,077
d. $217,231
e. $217,623
Given the following information, calculate the rate of return.
Price = $282.51
Time to maturity = 10 years
Annual payment = $50
Choose one answer.
a. 10%
b. 10.5%
c. 11%
d. 11.5%
e. 12%
We observe a stock selling for $20 per share. The next dividend is expected to be $1 per share. We think that the dividend will grow by 10% indefinitely. What is the dividend yield on this stock?
Choose one answer.
a. 5%
b. 10%
c. 15%
d. 20%
e. 25%