1. A companys noncallable bonds currently sell for $940. They have a 15-year maturity, an annual interest payment equal to $75, and a par value of $1,000. What is their yield to maturity?

A. 7.43%

B. 9.66%

C. 8.21%

D. 8.95%

E. 7.97%

2. Which of the following is not a relevant cash flow and should not be included in the analysis of a capital budgeting project?

A. Sunk costs that have been paid in prior years

B. Shipping and installation costs

C. Changes in net operating working capital

D. Opportunity costs

E. Cannibalization effects

3. A bank pays a 3.25% per annum nominal interest rate on deposits, with monthly compounding. What effective annual rate (EFF%) does the bank pay (rounded to the nearest 0.01%)?

A. 3.18%

B. 3.28%

C. 3.34%

D. 3.30%

E. 3.25%