A. EUR 10,000 are deposited in a bank for the five year period. If the annual interest rate is 5%, what will be the value of the compound interest at the maturity date?

B. An investor is proposed to deposit EUR 100 thousand in a bank for the three year period based on the three alternatives. First, an investor is proposed the annual compound interest rate of 7%. Second, the investor is proposed the annual simple interest rate of 10%. And third, the investor is proposed the annual compound interest rate of 6.5% with monthly compounding. Which alternative should be selected to maximize the return on the investment?

C. An investor is proposed to invest EUR 100 thousand in a municipal bond or, alternatively, in a corporate bond. Which alternative should be followed based on the risk and return concept?

D. An investor is proposed to deposit EUR 100 in a bank on a monthly basis during the three years at the annual interest rate of 6%. How much cash will investor accrue at the maturity date of the deposit? Please estimate the future value of the deposit based on the concepts of the ordinary annuity and the annuity due and explain the diference, if any.

E. How much Euro need to be deposited today to reach EUR 1,000,000 in the ten years from now if the annual interest rate equals -2%?

F. A company is planning to expand its specialty stores and finance the expansion by issuing 15-year zero coupon bonds with a face value of $1,000. If your opportunity cost is 8 percent and similar bonds pay coupons semi-annually, what will be the price at which you will be willing to purchase these bonds?

G. An investor is interested in a 10-year bond issued by a company that pays a coupon of 10 percent annually. The current price of this bond is $1,174.45. What is the yield that the investor would earn by buying it at this price and holding it to maturity?

H. Five years ago, an investor bought a 10-year bond that pays 8 percent semi-annually for $981.10. Today, the investor sold it for $1,067.22. What is the realized yield on the investment?