1. You plan to invest $20,000 into a mutual fund with 1.5% front-end load, 1.5% back-end load, 0.75% management fee and 0.23% 12b-1 fees. How much money will be invested into the fund after taking all necessary fees into account?

A) 19,760 B) 19,700 C) 19,850 D) 19,946

2. Continue with your answer from question 1. How much will you pay in management fees this year if the fee is 0.75%?

A) $126.1 B) $197.6 C) $147.8 D) $98.8

3. Lobo Corp currently pays an annual dividend of $5. Starting next fiscal year, the dividend is expected to increase by 3% a year. If the current interest rate in the market is 6.5% per year, what is the value of Lobos stock today?

A) $137 B) $187 C) $147 D) $157

4. You just purchased a 30-year bond with 6% annual coupon, par value of $1000, and 15 years to maturity. The bond makes payments semi-annually and the interest rate in the market is 7.0%. How is the bond trading relatively to par?

A) Below par B) At par C) Above par D) At a premium