1. Your favorite uncle Newman will be giving you $250 per month at the end of each month for four years when you begin college. With a 9.6% annual interest rate, what are these payments worth to you on the day you enter college? a. S 9,932.10 b. $14,559.50 c. S 9,592.53 d. $799.38 e. $1,214.25 2. The yield to maturity on a bond can best be defined as which of the following? a. The annual coupon divided by the face value (par value) of the bond. b. The return that an investor will receive from an interest yield and a capital gains yield from a bond that is held until maturity. c. The annual coupon divided by the market value of the bond. d. The return that an investor will receive if a callable bond is redeemed at its call date. e. The percentage change in the price of a bond due to a 1% interest rate change. 3. JoMayo, Inc. has 7.4% coupon bonds outstanding with a current market price of $1,095.52. Interest is paid semi-annually. The yield to maturity is 6.4% and the face value is $1,000. How many years is it until these bonds mature? a. 34.0 years b. 16.3 years c. 30.0 years d. 31.3 years e. 15.0 years 4. Kramerica Industries, Inc. common stock sells for $25.75 per share and pays an annual dividend that increases by 3% annually. The required market rate of return on this stock is 7.00%. What was the amount of the last dividend paid? a. $1.03 b. $0.52 c. $1.95 d. $1.00 e. $4.00