6. We purchased a 30-year zero coupon bond. Bonds of similar risk were paying a 7 percent return. How much would you pay for this bond (approximately)? a) $1000 b) $95 c) $131 d) $170 e) $127 17. We are looking at a loan with monthly payments and we are told the APR of the loan is 11.8%. What would be the loan's EAR (approximately)? a) 12.1% b) 12.3% c) 12.5% d) 12.8% e) 13.1% 18. The stock price of Elsinore Co. is $53. Investors require a 12% rate of return on similar stocks. If the company plans to pay a dividend of $3.15 next year, what growth rate is expected for the company's stock price? a) 6.1% b) 5.0% c) 4.6% d) 3.9% e) We need more information to determine the growth rate