26.You plan to give your child a new car for her graduation in 19 months.

The car costs $27,519

How much must you invest today in an account that earns 2.58% APR (compounded monthly) to exactly pay for the car?

31.When interest rates rise bond prices

Group of answer choices

Fall

Rise

32.In a typical bond arrangement, a firm issues a bond to the investing public.

In this arrangement who is the borrower and who is the lender?

Group of answer choices

The firm is the borrower AND the investor is the lender

The firm is the lender AND the investor is the borrower

33.If the YTM stays constant, the one periodCurrent Yieldand the one periodExpected Capital Gains/Losson the bond add-up to the bond's _____________

Group of answer choices

par value

current price

coupon rate

yield to maturity

34.There are actually many interest rates in the economy. However, we can talk about THE interest rate because

Group of answer choices

The interest rate on long-term government bonds is the key interest rate to follow.

Interest rates tend to move together, that is, when one interest rate increases all of them tend to increase and when one interest rate decreases all of them tend to decrease.

The interest rate on short-term government bonds is the key interest rate to follow.