1. At an interest rate of 4%, what comes closest to the amount of time it takes for a deposit of $7,500 to reach $15,000? a. 17.67 years b. 10.24 years c. 11.90 years d. 14.21 years e. 23.45 years 2. Which of the following comes closest to the present value of receiving $500 in 9 months if the interest rate is 4%? a. $ 489 b. $ 486 c. $ 479 d. $ 475 e. $ 482 3. You are trying to price two bonds that have the same maturity and par value but different coupon rates. Both bonds mature in 8 years and at maturity both bonds return the par value of $1,000. One bond has a coupon rate of 4% and a yield to maturity of 4%. The other bond has a coupon rate of 5% and a yield to maturity of 4%. What is the absolute value of the difference between the prices of these two bonds? a. $ 67.33 b. $ 140.39 c. $ 0 d. $ 62.10 e. $ 119.43 4. A couple borrows $200,000 for a mortgage that requires fixed monthly payments over 30 consecutive years. The first monthly payment is due in one month. If the interest rate on the mortgage is 4%, which of the following comes closest to the monthly payment? a. $ 843 b. $ 1,199 c. $ 955 d. $ 1,074 e. $ 1,331