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9. Jim would like to borrow $50,000 to purchase a boat. What will be his monthly payment assuming a 5-year loan at 3% APR? A.

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9. Jim would like to borrow $50,000 to purchase a boat. What will be his monthly payment assuming a 5-year loan at 3% APR? A. $450.04 B. $875.75 C. $898.43 D. $998.43. E. None of the above 10. Find the following bond's yield to maturity (YTM)? Par value: $1,000 Coupon rate: 4.2% Maturity: 5 years Current price: $1,100 A. 0.52% B. 1.04% C. 2.07% D. 2.7% E. None of the above 11. You are considering investing in either bond X or bond Y. Both bonds have a par value of $1,000, and a coupon rate of 2%. Bond X has a remaining life of 12 years and Bond Y has a life of 20 years. If the rate of interest on similar bonds were to rise, which of the following would happen: A. The value of Bond X will rise but the value of Bond Y will fall. B. The value of Bond Y will rise but the value of Bond X will fall. C. Both bonds will sell at their par values. D. The value of Bond Y will fall more than the value of Bond X. E. None of the above. 12. Jim wants to invest $500 every year beginning now for the next 10 years. How much will Jim have at the end of 10 years assuming a 2% annual rate of return? A. $3,396.67 B. $4,347.69 C. $4,500.00 D. $5,101.01 E. $5,584.36 11. You are considering investing in either bond X or bond Y. Both bonds have a par value of $1,000, and a coupon rate of 2%. Bond X has a remaining life of 12 years and Bond Y has a life of 20 years. If the rate of interest on similar bonds were to rise, which of the following would happen: A. The value of Bond X will rise but the value of Bond Y will fall. B. The value of Bond Y will rise but the value of Bond X will fall. C. Both bonds will sell at their par values. D. The value of Bond Y will fall more than the value of Bond X. E. None of the above. 12. Jim wants to invest $500 every year beginning now for the next 10 years. How much will Jim have at the end of 10 years assuming a 2% annual rate of return? $3,396.67 $4,347.69 A. B. C. $4,500.00 D. $5,101.01 E. $5,584.36

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