Carlos purchases a bond, newly issued by the Big Time Corporation, for $20,000. The bond pays $1,000 to its holder at the end of the first, second, and third years and pays $21,000 upon its maturity at the end of four years. The principal amount of this bond is the coupon rate is _ and the term of this bond is Multiple Choice O $1,000; 5 percent; four years $20,000; 5 percent; four years O $20,000; $1,000; 50 percent O $21,400; 5 percent; four yearsYou expect a share of Econ News.Com to sell for $71 a year from now. If you are willing to pay $70.75 for one share of the stock today, and you expect a dividend payment of $2.00, what rate of return do you require? Multiple Choice 0 2.8 percent. 2.8 percent. 3.2 percent. O 0.3 percent. Suppose you have $200 with which you can buy shares of stock from two companies: ABC Hot Chocolate Company and XYZ Lemonade. Each company's stock currently sells for $100 per share. If the temperature next year is lower than average, the stock price for ABC will increase by $30, and the stock price for XYZ will not change. Ifthe temperature next year is higher than average, the stock price for XYZ will increase by $30, and the stock price for ABC will not change. There is a 20 percent chance that it will be colder than average next year, and a 60 percent chance that it will be warmer than average. If you purchase two shares of XYZ stock and no shares of ABC stock, your expected gain will be Multiple Choice 0 $12 0 $24 O $48 0 $35 Carlos purchases a bond, newly issued by the Big Time Corporation, for $10,000. The bond pays $400 to its holder at the end of the first, second, and third years and pays $10,400 upon its maturity at the end of four years. The principal amount of this bond is_ _, the coupon rate is and the term of this bond is Multiple Choice O $400; 40 percent; four years O $10,000; 4 percent; four years O $10,000; $400; 4 percent O $10,400; 4 percent; four yearsYou expect a share of EconNews'Com to sell for $65 a year from now and to pay a $2 dividend per share in one year. What should you pay (rounded to the nearest dollar) for the stock today if you require an 8 percent return? Multiple Choice 0 $60 0 $62 0 $67 0 $70 Han pays $10,000 for a newly issued twoyear government bond with a $10,000 face value and a 6 percent coupon rate. One year later, after receiving the first coupon payment, Han sells the bond. If the current oneyear interest rate on government bonds is 7 percent, then the price Han receives is Multiple Choice 0 $10,000. $700. less than $10,000. 0 greater than $10,000