9) Niendorf Corporation's 5-year bonds yield 8.00%, and 5-year T-bonds yield 4.80%. The real risk-free rate is r* = 2.75%, the inflation premium for 5-year bonds is IP = 1.65%, the default risk premium for Niendorf's bonds is DRP = 1.20% versus zero for T-bonds, and the maturity risk premium for all bonds is found with the formula MRP = (t ? 1) 0.1%, where t = number of years to maturity. What is the liquidity premium (LP) on Niendorf's bonds?

A) 2.00% B) 1.80% C) 1.31% D) 1.62% E) 1.46%

10)Suppose Community Bank offers to lend you $10,000 for one year at a nominal annual rate of 8.00%, but you must make interest payments at the end of each quarter and then pay off the $10,000 principal amount at the end of the year. What is the effective annual rate on the loan?

A) 8.88% B) 9.10% C) 8.45% D) 8.24% E) 8.66%

What is the present value of the following cash flow stream at a rate of 12.0%? a. $9, 699 b. $11, 284 c. $11, 849 d. $10, 210 e. $10, 747 Niendorf Corporation's 5-years bonds yield 8.00%, and 5-years T-bonds yield 4.80%. The real risk-free rate is r* = 2.75%, the inflation premium for 5 -years bonds is IP = 1.65%, the default risk premium for Niendorf's bonds is DRP = 1.20% versus zero for T- bonds, and the maturity risk premium for all bonds is found with the formula MRP = (t - 1) times 0.1%, where t = number of year to maturity. What is the liquidity premium (I.P) on Niendorf's bonds? a. 2.00% b. 1.80% c. 1.31% d. 1.62% Last year Dania Corporation's sales were $525 million. If sales grow at 7.5% per year, how large 9in millions) will they be 8 years later? a. $1, 032.30 b. $845.03 c. $936.333 d. $983.14 e. $889.51