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can you help me right now? i need the answer in an hour 1. You plan to invest in bonds that pay 6.0%, compounded annually.

can you help me right now? i need the answer in an hour

1. You plan to invest in bonds that pay 6.0%, compounded annually. If you invest $10,000 today, how many years will it take for your investment to grow to $30,000?

  • 12.37
  • 13.74
  • 15.27
  • 18.85

Question 2.2. Suppose a State of New York bond will pay $1,000 ten years from now. If the going interest rate on these 10-year bonds is 5.5%, how much is the bond worth today?

  • $585.43
  • $614.70
  • $645.44
  • $677.71

Question 3.3. You plan to invest in securities that pay 8.0%, compounded annually. If you invest $5,000 today, how many years will it take for your investment to grow to $9,140.20?

  • 5.14
  • 5.71
  • 6.35
  • 7.84

Question 4.4. Suppose a State of California bond will pay $1,000 eight years from now. If the going interest rate on these 8-year bonds is 5.5%, how much is the bond worth today?

  • $651.60
  • $684.18
  • $718.39
  • $754.31

Question 5.5. Jose now has $500. How much would he have after 6 years if he leaves it invested at 5.5% with annual compounding?

  • $591.09
  • $622.20
  • $654.95
  • $689.42

Question 6.6. Suppose the U.S. Treasury offers to sell you a bond for $747.25. No payments will be made until the bond matures 5 years from now, at which time it will be redeemed for $1,000. What interest rate would you earn if you bought this bond at the offer price?

  • 4.37%
  • 4.86%
  • 5.40%
  • 6.00%

Question 7.7. If a firm's goal is to maximize its earnings per share, this is the best way to maximize the price of the common stock and thus shareholders' wealth.

  • True
  • False

Question 8.8. A $150,000 loan is to be amortized over 7 years, with annual end-of-year payments. Which of these statements is CORRECT?

  • The annual payments would be larger if the interest rate were lower.
  • If the loan were amortized over 10 years rather than 7 years, and if the interest rate were the same in either case, the first payment would include more dollars of interest under the 7-year amortization plan.
  • The proportion of each payment that represents interest as opposed to repayment of principal would be higher if the interest rate were lower.
  • The proportion of each payment that represents interest versus repayment of principal would be higher if the interest rate were higher.

Question 9.9. The disadvantages associated with a proprietorship are similar to those under a partnership. One exception relates to the more formal nature of the partnership agreement and the commitment of all partners' personal assets. As a result, partnerships do not have difficulty raising large amounts of capital. (Points : 2)

  • True
  • False

Question 10.10. Which of the following statements is CORRECT? (Points : 2)

  • A time line is not meaningful unless all cash flows occur annually.
  • Time lines are not useful for visualizing complex problems prior to doing actual calculations.
  • Time lines cannot be constructed to deal with situations where some of the cash flows occur annually but others occur quarterly.
  • Time lines can be constructed where some of the payments constitute an annuity but others are unequal and thus are not part of the annuity.

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