1-Suppose you borrowed $12,000 at a rate of 9.0% and must repay it in four equal installments at the end of each of the next four years. How large would your payments be? $3,704.02 $3,889.23 $4,083.69 $4,287.87 $4,502.26 2-A 15-year bond with a face value of $1,000 currently sells for $850. Which of the following statements is CORRECT? a-The bonds coupon rate exceeds its current yield. b-The bonds current yield exceeds its yield to maturity. c-The bonds yield to maturity is greater than its coupon rate. d-The bonds current yield is equal to its coupon rate. e-If the yield to maturity stays constant until the bond matures, the bonds price will remain at $850. 3-Ezzell Enterprises noncallable bonds currently sell for $1,165. They have a 15-year maturity, an annual coupon of $95, and a par value of $1,000. What is their yield to maturity? 6.20% 6.53% 6.87% 7.24% 7.62% 4-year Treasury bonds yield 5.5%. The inflation premium (IP) is 1.9%, and the maturity risk premium (MRP) on five-year bonds is 0.4%. What is the real risk-free rate, r*? 2.59% 2.88% 3.20% 3.52% 3.87% 5-Assume that the risk-free rate remains constant, but the market risk premium declines. Which of the following is most likely to occur? a-The required return on a stock with beta = 1.0 will not change. b-The required return on a stock with beta > 1.0 will increase. c-The return on "the market" will remain constant. d-The return on "the market" will increase. e-The required return on a stock with beta < 1.0 will decline