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1: Security A and security B both provide semi anual payment of 89 over 5Year. the annual rate of return for both securities is 6.5%.

1: Security A and security B both provide semi anual payment of 89 over 5Year. the annual rate of return for both securities is 6.5%. both securities will provide the smae number of payments, but the payments for Security A occur atthe beginning of the month and the payment for Security B occur at the end of the month. What is the difference in the present value of these two sets of payment?

12.86 18.96 15.86 25.98 24.36

Your employer contributes 50 a week to your retirement plan. Assume that you work for your employer for another sixteen years and that the applicable discount rate is 6.5 %,compounded weekly. Givn these assumptions, what is this employee benefit worth to you today?

24135.99

25852.63

24218.04

25920.55

21574.68

If you now buy a ten year 1000 face vale bond currently priced at $984, and the coupon pays7% annually, what is the coupon payment if the market interest rate on this type of bond declines to 6.5% the day after you buy the bond?

68.96

52.00

65.00

70.00

72.50

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