A risk-free, zero-coupon bond with a face value of $5,000 has 20 years to maturity. If the YTM is 6.1%, which of the following would be closest to the price this bond will trade at? OA. $1,836 OB. $2,448 OC. $2,142 OD. $1,530 You are interested in purchasing a new automobile that costs $39,000. The dealership offers you a special financing rate of 12% APR (1%) per month for 60 months. Assuming that you do not make a down payment on the auto and you take the dealer's financing deal, then your monthly car payments would be closest to: OA $694 OB. $1,215 OC. $1,388 OD. $868 Dan buys a property for $200,000. He is offered a 25-year loan by the bank, at an interest rate of 8% per year. What is the annual loan payment Dan must make? OA. $22,482.91 OB. $26,230.06 OC. $29,977.22 OD. $18,735.76 NoGrowth Industries presently pays an annual dividend of $1.50 per share and it is expected that these dividend payments will continue indefinitely. If NoGrowth's equity cost of capital is 10%, then the value of a share of NoGrowth's stock is closest to: OA. $18.00 OB. $16.50 OC. $12.00 OD. $15.00 Fun 50 How much will the coupon payments be of a 15-year $10,000 bond with a 5% coupon rate and semiannual payments? OA $500 OB. 883 OC. $250 OD. $1,000 Period 0 1 2 119 120 S3.6 3.6 $3.6 $3.6 3.6+ SI A corporation issues a bond that generates the above cash flows. If the periods shown are 1 mo which of the following best describes that bond? OA a 10-year bond with a notional value of $1,000 and a coupon rate of 1.075% paid annual OB, a 10-year bond with a notional value of $1.000 and a coupon rate of 4,3% paid monthly OC. a 40-year bond with a notional value of $1,000 and a coupon rate of 2.150% paid semiannually. OD. a 120-year bond with a notional value of $1,000 and a coupon rate of 4.3% paid quarterl Gremlin Industries will pay a dividend of $1.80 per share this year. It is expected that this dividend will grow by 6% per year each year in the future. The current price of Gremlin's stock is $22.40 per share. What is Gremlin's equity cost of capital? OA 14% 08. 13% OC. 18% 16%