Question
13. Marcy wants to buy a new car in one year.She currently has $1,500 in the bank. Marcy plans to save $250 a month towards
13. Marcy wants to buy a new car in one year.She currently has $1,500 in the bank. Marcy plans to save $250 a month towards the car.How much will Marcy have for a down payment assuming her bank pays 6% compounded monthly?
a. $4,584
b. $3,084
c. $4,217
d. $4,676
14.A bond with a face value of $1,000 has annual coupon payments of $100 and was issued 7 years ago. The bond currently sells for a premium and has 8 years left to maturity. This bond's ____ must be less than 10%.
I. yield to maturity II. current yield III. coupon rate
a. I only
b. II only
c. III only
d. II and III only
e. I and II only
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