D) $23.93 B) S19.93 C) $20.00 18) If a bond is priced at par value, then: 18) A) it has a very low level of default risk B) its coupon rate equals its yield to maturity. C) the bond is quite close to maturity D) it must be a zero-coupon bond. 19) A credit card account that charges interest at the rate of 1.25% per month would have an annually compounded rate of A) 16.08 % ; 15.00 % C) 12.68 % ; 15.00% 19) and an APR of B) 14.55% ; 16.08 % D) 15.00%; 14.55 % 20) The present value of an annuity stream of $100 per year is $614 when valued at a 10 % rate. By approximately how much would the value change if these were annuities due? A) $6.14 x Number of years in annuity stream B) $10 C) S10x Number of years in annuity stream D) $61.40 20) 1) S50,000 is borrowed, to be repaid in three equal, annual payments with 10 % interest. Approximately how much principal is amortized with the first payment? A) S5,000.00 21) B) $20,105.74 C) $2,010.60 D) S15.105.74 An investor buys a 10-year, 7 % coupon bond for $1,050, holds it for 1 year, and then 22) sells it for $1,040. What was the investor's rate of return? C) 6.67% A) 5.71% B) 7.00% D) 6.00%