16. What is the present value of a 12-year annuity of $$,000 per year with the first payment received at the end of the 5h year given a 10 percent discount rate? a. $21,155 b. $23,270 c. $24,260 d. $25,680 e. None of the above 17. ABC Corporation issued and sold 10 shares of stock to Irene Investor, a private individual. This represents a secondary market transaction. a. True b. False 18. When interest rates are low, the liquidity premium is large; when interest rates are high, the liquidity premium is small. a. True. b. False. After examining the various personal loan rates available to you, you find that you can borrow funds from a finance company at an annual rate 18.9 percent compounded monthly. What is the actual rate of interest, APY, or EAR, you are paying? 19. a. 19.48 percent b. 19.67 percent c. 20.63 percent d. 20.87 percent e. 21.21 percent 20. A load mutual fund is a mutual fund that charges a sales commission. a. True. b. False. c. None of the above. When managers have little or no ownership in the firm, they are less likely to work energetically for the company's shareholders. We call this type of conflict a(n) 21. a ownership problem b. Moral problem c. Management problem d. Agency problem e. None of the above