In 2015, you invest $8,000 at 8 percent compounded semiannually for four years. After that the interest rate increases to 10 percent compounded monthly, what is the investment worth in 2022?

11,639.55

12,589.11

13,548.42

14,760.64

15,589.61

You are going to buy a car, and the most you can pay each month is $650 for 42-month financing at 6 percent compounded monthly. You have nothing to trade and no down payment. The most expensive car you can purchase is

1. an old pick-up for $5,000
2. a smart car for $14,000
3. a Toyota Camry for $17,000

d. an Acura for $25,000

e. a Cadillac for $27,000

3. What is the Macaulays duration of a bond with a $10,000 face value, 9.4% coupon, 3 years to maturity and a 8.4% YTM? (Assuming semi bond)2.742years 2.713 years 2.687 years 2.455 years 2.216 years

4. What is the Macaulays duration of a bond with a par value of $10,000 that has a coupon rate of 6.5 percent annually and a final maturity of two years? Assume that the required rate of return is 4 percent compounded semiannually.

1. 1.949 years

b. 1.910 years

c. 1.876 years

d. 1.713 years

5. What is the duration of a two-year zero coupon bond that pays $10,000 at maturity and is priced to yield 9 percent with semiannual compounding?

a. 2.00 years

b. 2.31 years

c. 2.66 years

d. 2.79 years

Using the following information for question 6-8.

Assets	Amount	Rate		Liabilities & Equity	Amount	Rate
Rate sensitive	102300	0.033		Rate sensitive	91600	0.80%
Fixed rate	161400	0.045		Fixed rate	180850	2.10%
Nonearning	27500			Nonpaying liabilities & Equity	18750
Total	291200			Total	291200

if interest rates and portfolio composition remain constant during the year.

6. What is the banks GAP

a. 10700

b. 10600

c. 10590

d. 10330

7. What is the banks expected NII

1. 6065.85
2. 6108.25
3. 6231.15
4. 6317.99
5. 6417.82

8. What is the banks NIM

1. 0.0164
2. 0.0198
3. 0.0215
4. 0.0231

0.0259