7. Suppose the Lucky Charm Brewing Company offers to sell you a non-callable bond for $2,000. No payments will be made until the bond matures 10 years from now, where the corporation will repay the principal amount, $3,400. Assuming no risk of default, what is the yield to maturity for this bond? a. 5.25% b. 5.35% c. 5.45% d 5.55% e. 5.65% 8. You inherit $685,000 and invest it to earn 2.5% annually. How much could you withdraw at the beginning of each of the next 10 years (this will exhaust the initial amount)? a $74,742.98 b. $76,358.30 c. $78,267.25 d. $80,014.21 e. $81,972.01 9. Which of the following is generally the least risky for a US resident? a. A corporate bond b. A municipal bond A Treasury bond d. A municipal bond e. A share of common stock from a major corporation 10. All else equal, which of these bonds has the highest nominal interest rate? A bond with a rating of AAA b. A bond with a rating of A C. A bond with a rating of BBB d. A bond with a rating of B e. A bond with a rating of CCC a