4.

You are considering the purchase of new living room furniture that costs $1,280. The store will allow you to make weekly payments of $27.72 for one year to pay off the loan. What is the EAR of this arrangment?

rev: 02_14_2019_QC_CS-158611

Multiple Choice

• 22.63%

• 25.33%

• 26.83%

• 28.17%

• 23.82%

5.

Workman Software has 8.4 percent coupon bonds on the market with 6 years to maturity. The bonds make semiannual payments and currently sell for 95.4 percent of par.

a.	What is the current yield on the bonds?
	multiple choice 1 9.25% 9.75% 8.81% 0.19%

b.	The YTM?
	multiple choice 2 9.42% 4.71% 9.60% 8.90%

c.	The effective annual yield?
	multiple choice 3 9.39% 10.12% 9.64% 0.09% 6. 6. There is a bond that has a quoted price of 106.875 and a par value of $2,000. The coupon rate is 6.93 percent and the bond matures in 23 years. If the bond makes semiannual coupon payments, what is the YTM of the bond? Multiple Choice 4.77% 5.72% 3.04% 3.18% 6.36%