1. What is the present value of annuity due that pays you 7,000 per month for twenty years. Assume the appropriate discount is 4% A)$1,147,349 B)1,155,153 C)1,159,004 D)1,161,137
2. You make a $20,000 investment that pays you $6,000 in year 1, $11,000 in year 2, $10,000 in year 3, and $1,00 in year 4. What annual rate of return has your investment generated? A)16.84% B)16.42% C)16.19% D)16.01%
3. You have an Opportunity to make an investment you estimate will generate the following cash flows: Year 1=$6,000 Year 2=$9,500 Year 3 = $8,800 Year 4 = $10,200. With a required rate of return of 18%, what is the maximum investment you would be willing to make in this project. A)$21,936 B)$22,525 C)$22,907 D)$23,249
4. You put $150,000 into an account today paying 5% interest. You take $1000 per month out of the account. How long will it take for your account to be depleted?
5.At a rate of 7%, how long does it take to double our money? A)12.67 years B)11.19 Years C) 10.24 years D) 9.66 years
6.What is the effective interest rate on an account that pays 9% interest compounded daily? A) 9.11% B) 9.25% C) 9.31% D) 9.42%
7. The present value of $1000 received at the end of year 1, $1,200 received at the end of year 2, and $1,300 received at the end of year 3, assuming a discount of 7 percent is A)$2500 B)$3,044 C)$6,516 D)$2,856
8. A $1,000 par value bond paying a 6% semi-annual coupon with 25 years to maturity is priced at $1,215. This bond is callable in 10 years at a price of $1060.
i. What is this bond's YTM?
ii. What is this bond's YTC?
iii. What is this bond"s current Yield?