16. You expect to receive $1,000 at the end of each of the next 3 years. You will deposit these payments into an account which pays 10 pereent compounded semiannually. What is the future value of these payments, that is, the value at the end of the third year? a. $3,000 b. $3,310 c. $3,318 d. $3,401 c. $3,438 N=3z=6PIy=2PU=0PM+711000 17. Which one of the following has the best effective annual rate from the perspective of a lender? a. 8 percent compounded annually b. 8 percent compounded semi-annually c. 8 percent compounded quarterly d. 8 percent compounded monthly c.) 8 percent compounded daily 18. You have just purchased a 10-year, $1,000 par value bond. The coupon rate on this bond is 8 percent annually, with interest being paid every 6 months. If you expect to earn a 10 percent YTM on this bond, how much did you pay for it? Note you must adjust PMT, LY, and N appropriately because the coupons are paid semiannually. a. $1,122.87 PM+=I=10N=102P/Y=2 b.$1,003,42 d.$812.50d.$950.75 c.$875.38 19. Tony's Pizzeria plans to issue bonds with a par value of $1,000 and 12 years to maturity. These bonds will pay $50 interest every 6 months. Current market conditions are such that the bonds will be sold to net \$937.79. What is the YTM of the issue as a broker would quote it to an investor? Note that you must adjust PMT, I/Y, and N appropriately because the coupons are paid semiannually and that the VY answer from your calculator is not the annual YTM in this problem. a. 5.47% b. 10% c. 10.94% y+m=12 d. 8% e. 7% PMt=50 20. When YTM is greater than the coupon rate, the bond is selling at a discount. (a. True b. False YTM-Coupon-premium