14) You purchased the stock of Sargent Motors at a price of $75.75 one year ago today. If you sell the stock today for $89.00, what is your rate of returm? A) 25.0% B) 35.0% C) 12.5% D) 17.5% 15) Which of the following provides the greatest equivalent annual interest? A) 9.5% compounded daily C) 9.75% compounded monthly B) 9% compounded quarterly D) 10% compounded annually 16) You are evaluating the purchase of Cellars, Inc. common shares. You plan to hold the stock for ont year and you expect and then sell it. If you think one year from now you could sell a share for $40.00 and do not expect a dividend, what is the maximum price you could pay for a share today i your required rate of retum is 11% ? A) $44.40 B) $4.40 C) $38.91 D) $36.04 17) You took out a $200,000,30-year mortgage exactly 10 years ago with an annual interest rate of 9%. The terms of that mortgage require equal monthly payments for $1,609.25. You just made the 120 th payment. What is the current balance of your mortgage? A) $124,980 B) $178,860 C) $6,890 D) $64,740 18) The Blackburn Group has recently issued 20-year, unsecured bonds rated BB by Moody's. These bonds yield 443 basis points above the U.S. Treasury yield of 2.76%. The yield to maturity on these bonds is A) 12.23% B) 4.43%. C) 7.19% D) 2.76% 19) A bank will loan you $17,500 for 4 years to buy a car. The loan must be repaid in equal monthly payments. The annual interest rate on the loan is 6% of the unpaid balance. What is the amount of your monthly payments? A) $688.11 B) $410.99 C) $5,050.35 D) $1,118.21