A 5-year $50,000 loan is to be paid off by monthly payments of $1,410.20 at each month-end. What monthly interest rate and effective annual interest rate are being charged on the loan?

a)	0.5% ; 6.17%
b)	1% ; 12.68%
c)	1.5% ; 19.56%
d)	2% ; 26.82%
e)	None of the above

A bank's certificate of deposit carrying 12% annual interest rate will pay $1,000 at the end of one year from today. Will the certificate sell at a higher price if the interest is compounded semi-annually rather than annually?

	True
	False

Investing in a 5-year, $1,000 face value bond carrying 8% annual coupon interest is equivalent to investing in a bank account at 8% annual compound interest rate.

	True
	False

For a bond trading at a discount, the current yield is less than the bond's YTM (yield to maturity).

	True
	False