Question

ac me moh day in onder to have total of $100.000 in 30 yeary AS what an p ae APRI ld Raye nd to ears if se deposite 510 per m 10) Jia ho s $50,000 a 10 percent a ly ompounded interest so be repaid in four egual m The actl endod year loan payment is A)S10,774 B)S12,500 Os14340 D) S15,773 D How ong would it take for you to sve an adegte amount for retiremmt if you deposit $40,000 per year into an account beginning one year from today that pays 12 percent per year if you wish to have a total of S1,000,000 at retirement? A) 12.2 years B) 10.5 years C) 14.8 years D) 11.5 years 12) Generally, an increase in risk will result in A) a lower required return or interest rate B) a higher required return or interest rate C)a higher return on investment D) a lower return on investment 13) The given date and held to maturity A) risk premium B) yield curve C) risk-free rate D) yield to maturity , is the compound annual rate of interest earned on a debt security purchased on a 14) The current yield on a bond is measured by A) the annual interest payment divided by the current price B) the annual interest payment divided by the par value C) the annual interest payment divided by the maturity value D) the annual interest payment divided by the yield to maturity 15) A debenture is A) a bond secured by specific assets that any firm can issue B) a secured bond that is secured by unspecified assets C) a secured bond issued by startup firms D) an unsecured bond that only creditworthy firms can issue

Answer 1

9 A

10 D

11 A 12.2 years using future value of money FV PV(1+r)^n

12 C Higher return on investment

13 D yield to maturity

14 A

15 D