answers are given. please provide calculation using a financial calculator and show calculation if you use formulas in pics below.

s the statement or answers the question. I) A bank pays interest semiannually with an EAR of 13%, what is the periodic interest rate D) 7.56% applicable semiannually? 6,30% C) 5.04% A) 12.60% 2) 2) In 2007, interest rates were about 4.5% and inflation was about 2.8%, what was the real interest rate in 2007? A) 1.61% B) 1.62% (O 1.65% D) 1.58% 3) 3) A Xerox DocuColor photocopier costing S44.000 is paid off in 60 monthly installments at 6.90% APR. Ater three years the company wishes to sell the photocopier. What is the minimum price f which they can sell the copier so that they can cover the cost of the balance remaining on the loan? A) $23,319 B) $27,206 C) $15,546 $19,433 .10% 4) 4) An investor buys a property for $608,000 with a 25- year mortgage and monthly payments at & APR. After 18 months the investor resells the property for $667,525. How much cash will the investor have from the sale, once the mortgage is paid off? A) $100,129 B) S57,216 O $71,521 D) $143,041 5) Corey buys 10 Tufflift 4-post, 4.5-ton car hoists for his parking garage at a total cost of $432,000. He finances this with a five-year loan at 7.80% APR with monthly payments. After he has made the first 20 payments, how much is the outstanding principal balance on his loan? A) $428,689 B) $244,965 O S306,206 D) $612,412 6) What is the yield to maturity of a(n) eight-year, S5000 bond with a 4.4% coupon rate and semiannual coupons if this bond is currently trading for a price of $4723.70? 5.26% B) 631% C) 7.36% D) 2.63% 7) A $1000 bond with a coupon rate of 6.2% paid semiannually has eight years to maturity and a 7) yield to maturity of 83%. If interest rates rise and the yield to maturity increases to 8.6%, what will happen to the price of the bond? The price of the bond will fall by $15.78 C) The price of the bond will rise by $15.78 B) The price of the bond will fall by $18.93 D) The price of the bond will not change 8) what must be the price of a $1000 bond with a 5.8% coupon rate, annual coupons, and 20 years to 8) maturity if YTM is 7.8% APR? B) $960.82 D $800.68 A) $640.54 C) 1120.95 9) What is the coupon rate of an eight- year, $10,000 bond with semiannual coupons and a price of 9) S90066568, if it has a yield to maturity of 6.5%? A) 5.87% B) 6.84% C) 3.91% 4.888% Div, Div r (+r) PN = DIV N +1 Div Discounted dividend model (DDM): with Constant Growth DDM model PV(Future Total Dividends and Net Repurchases) Shares Outstandingo Total Payout model Earnings Growth Rate Retention Rate X Return on New Investment (ROE) Where Retention Rate-1-Payout rate If earnings growth rate is the same as the dividend growth rate, then G Retention Rate X Return on New Investment Project Evaluation NPV -PV(Benefits)- PV(Costs) IRR is the discount rate that sets NPV = 0 Profitability index-Value Created/Resource Consumed - NPV/Resource consumed Capital Budgeting Incremental Earnings = (Incremental Revenues-Incremental Cost-Depreciation) X (1-Tax Rate) Free Cash Flow (Revenues - Costs - Depreciation) X (1 - Tax Rate) + Depreciation CapEx - Change in NWC After-Tax Cash Flow from Asset Sale Sale Price-(Tax Rate X Capital Gain) Capital Gain = Sale Price-Book Value Book Value Purchase Price - Accumulated Depreciation Formulas BUS241 Time Value of Money and Interest Rates Future value in n periods of one cash flow C received today: FV = C * (1 + r)" Present value today of one cash flow C received in n periods Rate of return in order to go from PV to FV in period n: Present value of perpetuity PV FV i PV PV(C in perpetuity) C/hr Present value of growing perpetuity: PV(C in perpetuity grows at rate g) Present value of regular annuity: Future value of a regular annuity: PMT in a regular annuity: C/(r-g) rl (1+r) PV Present Value of a growing annuity Equivalent n-period discount rate (I+r)-1 where r is the discou Converting an APR to EAR: nt rate for one period 1+EAR:(1+Amey where m is the number of compounding periods per year Bonds Coupon payment (CPN)Coupon Rate x Face Value Zero Coupon Bonds: Number of Coupon Payments per Year 1+YTM=/ Face Value1 Price YTM for a zero coupon bond: Coupon Bonds: Face Value Stocks r, = Div, +B-Po Shares Ous tan dinge, xDividend Pao and P,21+ Holding Period Return Earnings,xDividend Payout Rate, Dividend: Shares Outs tan ding - EPS,xDividend Payout Rate, Formula Sheet Final