1. A corporate bond pays a semi-annual coupon of $34.00. The bond has a par value of $1,000 and matures in 15 years. What is the current price of the bond if current annual yields on similar bonds are 7.60%?
A. $631.55
B. $1,000
C. $627.88
D. $929.12
2. What is the average annualized compounded return using the following information?
Period Beg Price End Price Div
2010 25 26 1.00
2011 26 27 1.10
2012 27 20 1.20
2013 20 22 1.30
2014 22 23 1.40
A. 3.44%
B. 4.40%
C. 6.87%
D. 18.42%
3. What is the total amount of social security taxes (OASDI) the social security administration receives from someone earning an annual salary of $87,000?
A. $5,394
B. $10,788
C. $8,700
D. $9,222
4. All of the following are exceptions to the IRA early withdrawl (10%) tax penalty rule except?
A. Rollovers
B. Disability
C. Unemployment
D. Education