An annuity is set up that will pay $1,200 per year for nine years. What is the present value (PV) of this annuity given that the discount rate is 4%? OA. $10,706 OB. $8,922 OC. $12,491 OD. $5,353 16. What is the present value (PV) of $200,000 received six years from now, assuming the interest rate is 8% per year? OA. $126,034 OB. $220,559 OC. $120,000 OD. $157,542 17. What must be the price of a $5,000 bond with a 6.9% coupon rate, semiannual coupons, and eight years to maturity if it has a yield to maturity of 10% APR? OA $3,328 OB. $4,160 OC. $4,992 OD. $5,824 18. Consider the following timeline detailing a stream of cash flows: Date $5000 $6000 $7000 $8000 Cash flow If the current market rate of interest is 8%, then the present value (PV) of this stream of cash flows is closest to: OA $25,453 OB. $33,938 OC. $21,211 OD. $10,606 19. What is the future value (FV) of $50,000 in thirty years, assuming the interest rate is 5% per year? OA. S194,487 OB. $183,683 OC. $216,097 OD. $32,500 20. What is the coupon rate of a ten-year, $10,000 bond with semiannual coupons and a price of $7,821.35, if it has a yield to maturity of 7.9%? OA 6.591% OB. 3.766% OC. 4.708% OD. 5.65% Von Bora Corporation (VBC) is expected to pay a $4.00 dividend at the end of this year. If you expect VBC's dividend to grow by 4% per year forever and VBC's equity cost of capital is 10%, then the value of a share of VBS stock is closest to: OA. $40.00 OB. $66.67 OC. $26.67 OD. $28.57 If $15,000 is invested at 10% per year, in approximately how many years will the investment double? OA. 11 years OB. 7.3 years OC. 14.6 years OD. 8.4 years Sara wants to have $600,000 in her savings account when she retires. How much must she put in the account now, if the account pays a fixed interest rate of 9%, to ensure that she has $600,000 in 25 years time? OA. $80,531 OB. $125,246 OC. $97,413 OD. $69,581 Jumbuck Exploration has a current stock price of $2.55 and is expected to sell for $2.68 in one year's time, immediately after it pays a dividend of $0.34. Which of the following is closest to Jumbuck Exploration's equity cost of capital? OA 9.22% OB. 23.04% OC. 18.43% OD. 11,06% Page 7 A risk-free, zero-coupon bond with a $10,000 face value has 20 years to maturity. The bond currently trades at $8,600. What is the yield to maturity of this bond? OA 57% OB. 0.757% OC. 86% OD. 0.379%