7. Look at figure 6.3: Why do you feel that long term interest rates were higher about the year 1981?

10. If the price of a bond falls, what happens to its yield?

19.If I plan for retirement, and invest $5,000 per year for 30 years, what is the value of my investment at the end of the 30 year period?

20.If I purchase a $100,000 car, and put down 20%, what is my loan payment if the term is 5 years and the interest rate is 4%?

22.You purchase a home for $700,000. You put down $250,000 at an interest rate of 5.85%. If you have a 30 year mortgage, what is your payment?

23.My car payment is $500 per month. My loan term is four years. My interest rate is 3%. How much is the value of my loan?

24.A person needs a permanent income of $500,000. If the discount rate is 4%, how much is needed to establish the permanent income stream?

45.You purchase a home for $600,000. You put down $100,000 at an interest rate of 4%. If you have a 30 year mortgage, what is your payment?

46.Please explain how to figure out a car payment as part of a car loan you are applying for.

66.Constant Dividend Growth Model Problem

A utility company pays $2.30 per share in dividends. If its cost of capital is 7% and the dividend is expected to grow at 2% per year, what is the value of the stock?

Please write out how you would calculate this solution.

67. Preferred Stock Model Problem

If a firm has a dividend of $10 per year, and its required return is 10.3%, what is the value of the Preferred Stock?

Please write out how you would calculate this solution.