A Treasury bond that matures in 5 years has a yield of 5 percent. A 5-year corporate bond has a yield of 6.5 percent. Assume that the liquidity premium on the corporate bond is 0.5 percent. What is the default risk premium on the corporate bond? A) 2.0% B) 1.5% C) 1.0% D) 0.5% You are considering buying a new car. The price is $23,000 and you will pay a down payment of $3,000. If you plan to finance the car over a 50-month period at a nominal interest rate of 12%, what would be your monthly payment? A) $613.25 B) $510.25 C) $480.65 OD) $620.50 At an effective annual interest rate of 12.95%, how many years will it take a given amount to triple in value (Round to the closest year)? A) 6 years B) 7 years C) 8 years D) 9 years You invested $25,000 in a perpetuity fund that pays you $3,000 a year forever. What is your rate of return on this investment? A) 15% B) 14% C) 13% D) 12%