1. The issuing of new securities, mortgages, and other claims to wealth takes place in the: a. secondary market b. money market c. primary market d. securities market 2. To study finance at the micro level is to study of all but which of the following? a. fund raising for business firms b. financial institutions c. asset management d. financial planning 3. A famous athlete is awarded a $9 million contract that stipulates equal payments to be made monthly over a period of five years. To determine what such a contract is worth today, you would need to use: a. present value factors b. future value factors c. present value factors of an annuity d. future value factors of an annuity 4. Which of the following terms best describes an annuity due? a. a perpetuity b. unequal payments c. payment at beginning of year d. payment at the end of the year 5. A potential investment pays $10 per year indefinitely. The appropriate discount rate for the potential investor is 10%. The present value of this cash flow is calculated by: a. multiplying $10 by the appropriate present value factor b. dividing $10 by 10 c. multiplying $10 by the present value factor of an annuity d. dividing $10 by .10 6. If the stated or nominal interest rate is 10 percent and the inflation rate is 5 percent, the differential compounding rate would be ________ percent 7. B deposited $5,000 in a savings account that paid 8% interest compounded quarterly. What is the effective rate of interest? 8. How much would you be willing to pay for a preferred stock that pays $6.50 to perpetuity if the appropriate discount rate is 9%? 9. In 1986, the average tuition for one year in the BCom program at the USP was $3,600. Thirty years later, in 2016, the average tuition was $27,400. What is the annual growth rate in tuition over the 30-year period? 10. A deposits $2,000 per year at the end of the year for the next 20 years into a super account that pays 6%. How much will A have on deposit at the end of 20 years?