1. You have contracted to buy a house for $521,250, paying $104,250 as a down payment and taking a fully amortizing mortgage for the balance at a 3.875% annual interest rate for 30 years. What will your monthly payment (covering principal and interest) be if you make monthly installments over the next 30 years (round to the nearest dollar).

		$1158
		$1961
		$1979
		$2219

2.

Calculate Florentine Inc.'s cost of equity if the company has a beta coefficient of 1.37, if the expected risk-free return is 5.3% and the expected market rate of return is 11.1%.

		12.451%
		12.541%
		13.246%
		13.546%

Five years ago Constellation, Inc., sold an issue of 20-year $1000 par bonds to finance a new distribution terminal. The bonds pay 6.75% interest, semi-annually. Today's required rate of return for similarly rated bonds is 7.17%. How much should these bonds sell for today? (Round off to the nearest $1.)

		$956
		$962
		$1000
		$1045