Elinore is asked to invest $5,400 in a friend's business with the promise that the friend will repay $5,940 in one year's time. Elinore finds her best alternative to this investment, with similar risk, is one that will pay her $5,832 in one year's time. U.S. securities of similar term offer a rate of return of 6%. What is the opportunity cost of capital in this case? A. 9% B. 10% OO OC. 6% OD. 8% Use the figure for the question(s) below. Zero Coupon Yield Curve 3 2.5 2 6 3 Maturity (years) The current zero-coupon yield curve for risk-free bonds is shown above. What is the price of a zero-coupon, four-year, risk-free bond of $100? A. $96.67 B. $87.99 OC. $92.15 OD. $85.64 Yield to Maturity (%) 3.5 A homeowner has five years of monthly payments of $1,400 before she has paid off her house. If the interest rate is 4% APR, what is the remaining balance on her loan? A. $76,019 B. $60,815 OC. $91,222 D. $106,426 A pottery factory purchases a continuous belt conveyor kiln for $59,000. A 8.5% APR loan with monthly payments is taken out to purchase the kiln. If the monthly payments are $654.92, over what term is this loan being paid? FREED A. 13 years OB. 12 years OC. 10 years OD. 11 years