Lisa buys a car today, and have to sign for a car loan.To calculate Lisa's monthly loan payment, she would use the calculation for:

a. FV of one payment

b. FV of an annuity

c. PV of one payment

d. PV of an annuity

Dannon just issued a 10 year 6% coupon bond. The face value of the bond is $1,000 and the bond makes annual coupon payments. If the required return on the bond is 3%, what is the bond's price?

a. $1255.80

b. $1000.00

c. $778.80

d. $1431.84

The factor which causes the difference in the return an investor could earn investing in two year versus five year State of Colorado bonds is the:

a. Default risk premium

b. Maturity risk premium

c. Inflation premium

d. Liquidity risk premium

Ricardo wants to be a millionaire 35 years from now.If he could earn 8% per year on his money, how much would he has to invest every year to achieve the goal?

a. $85,836.91

b. $68,000.00

c. $28,571.43

d. $5,803.15

If a bond is issued at a premium, the coupon interest rate equals:

a. Annual dollars interest divided by principal

b. Yield to maturity divided by principal

c. Annual dollars interest divided by initial price

d. Yield to maturity divided by initial price

How much return is earned in two years on a $1,000 investment that earns 24% compoundedmonthly?

a. $174.63

b. $480.00

c. $538.00

d. $608.00