17.Assume that you have $10,500 dollars to invest today. You plan to invest the money for 10 years earning interest at 8% per year, compounded quarterly. What is the future value of your investment?

A. $23,184.42

C.$23,006.79

D. $22,668.71

E.$21,000.00

F. none of the above

18.Assume that you will receive $25,000 at the end of 3 years. If you had the money today, you could invest it at 5% per year, compounded semiannually. What is the present value of the $25,000?

A. $21,595.94

B.$21,537.72

C. $21,557.42

D.$18,655.38

E. none of the above.

19.Assume that you are estimating the value of a bond with the following characteristics:

par value=$1,000

coupon rate=7.25% per year

payment schedule=semiannual

maturity date=5 years

required rate of return=6.5% per year

Since your required rate of return is 6.5% per year, which of the following will be true of the value of the bond?

A. The value will be greater than par.

B. The value will be equal to par.

C. The value will be less than par.

D. The value will be $1000.

E. It is impossible to answer with the information given.

20.The value of any asset is dependent upon expected future cash flows and upon the investor's required rate of return. All else being equal, a __________ required rate of return results in a _________ asset value.

A. higher; higher

B. lower; higher

C. higher; lower

D. lower; lower

E. Both B and C are true.