16) The salesperson offers, "Buy this new car for $25.000 cash or, with an appropriate 16) down payment, pay $500 per month for 48 months at 8% interest." Assuming that the salesperson does not offer a free lunch, calculate the "appropriate" down payment. A) $1,000.00 B) $4,519.04 C) $8,000.00 D) $5.127.24 17) 17) If the coupon rate on an outstanding bond is lower than the relevant current interest rate, then the yield to maturity will be: A) equal to the coupon rate C) higher than the coupon rate. B) lower than current interest rates D) lower than the coupon rate. 18) If a bond offers a current yield of 5% and a yield to maturity of 5.45%, then the: A) bond has a high default premium. B) bond must be a Treasury Inflation-Protected Security. C) bond is selling at a discount. D) promised yield is not likely to materialize 19) Which one of these statements is not correct? 9) A) When the U.S. government issues Treasury bonds, investors never need to worry B) When a foreign government borrows dollars, investors worry that in some future C) When a Eurozone government borrows curos, investors worry that in some future D) When the Japanese government borrows yen, investors worry that in some future that they will not be paid back crisis the government will not have sufficient dollars to repay the debt. crisis the govemment will not have sufficient euros to repay the deb. crisis the government will not have sufficient yen to repay the debt. 20) How much should you be prepared to pay for a 10-year bond with an annual coupon of 20) 6% and a yield to maturity of 7.5%? B) $897.04 A) $985.00 C) $1,000.00 D) $411.84 ima when the hond's vield to maturity 21)