Bonds with lower bond ratings often offered higher rate of return. That extra return is a(n)

		Taxability premium
		Liquidity premium
		Default risk premium
		Interest rate risk premium

You recently bought a car at a price of $20,000, to pay in monthly payments of $500 each for 48 months. What annual interest rate were you charged on the financing of the car?

		9.24 percent
		7.25 percent
		8.60 percent
		6.25 percent

The bond of Library Inc. has an 8 percent coupon and pay interest annually. Currently, the bond price is quoted as 105% of its face value. The bonds mature in 6 years. What is the yield to maturity?

		7.74 percent
		6.95 percent
		8.22 percent
		9.81 percent