If you predicted that a stock would be worth $42 in five years and that you wanted to get a ten percent average annual return, what price should you be willing to pay for it now? (Assume no fees or taxes.) O a. $26.08 O b. $25.56 O c. $38.53 O d. $26.60 Once you leave a job with an employer, you will probably have to forfeit your pension plan unless you have been with the company for five or more years. Select one: O True O False Given the following ATT Ltd. bond information: $1000 par value, maturity Dec 22, 2028, semi- annual coupon 7.25 percent, price 106.50 and yield 6.9 percent. How much would a $1000 par value ATT Ltd. bond cost as of the day of this listing? a. $1000 O b. $1065 OC. $106.50 O d. $725 In comparing term insurance with mortgage life insurance, which of the following is true? O a. Mortgage insurance is less expensive because of the group discount. O b. Mortgage insurance is guaranteed renewable. O c. The owner has more control with term insurance. O d. The premiums decrease with mortgage insurance but not with term insurance. Which would be the best loan offer? Loan A has a 9.5 percent rate calculated quarterly and Loan B has a 9.25 percent rate calculated monthly. O a. The effective rate on Loan A is 9.84 percent and on Loan B is 9.65 percent. Therefore, Loan B is best. O b. Loan B is a lower interest rate, so it is the better choice. O C. Loan A is compounded less frequently, so it would be the best option. O d. The effective rate on Loan A is 9.84 percent and on Loan B is 9.92. percent. Therefore, Loan A is best. The benefit of the extendible feature of a bond is that a. it allows the investor to continue receiving a higher interest rate for a longer period. O b. it allows the investor the option of extending the period before the bond will become callable. it allows the issuer the option to extend the bond during lower interest rate periods. O d. it allows the issuer to extend the callable period when interest rates rise. . Under which of the following conditions must you file a personal income tax return? O a. You will receive an income tax refund. O b. You got married, separated, or divorced during the calendar year. O c. You have to contribute to the Canada Pension Plan. O d. You acquired capital property during the calendar year. If you could choose any of the following interest rates for your investment which would you choose to give you the highest return? 13% compounded quarterly O b. 13% compounded semi-annually O c. 13% compounded monthly O d. 14% compounded annually