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please help me answer this. thank you so much 2. Assume you make annual payments on a 5-year $100,000 loan at a 10% rate of
please help me answer this. thank you so much
2. Assume you make annual payments on a 5-year $100,000 loan at a 10% rate of interest. How much interest do you pay in year 2? A.) S4,724 B.) 58,362 C.) $10,000 D.) $16,380 E.) $26,380 3. A company wants to issue new 20-year bonds to finance a large investment. It currently has 6.4% coupon bonds on the market selling for $1,043.47 that make semiannual payments and mature in 20 years. What coupon rate should the company set on its new bonds if it wants them to sell at par? A.) 5.42% B.) 3.01% C.) 6.02% D.) 4.52% E.) 5.72% 4. A firm's board of directors announced that the next annual dividend on its company's stock will be $1.50 a share with future dividends increasing by 1.8% annually. How much will one share of this stock be worth five years from now if the required return is 15.5%? A.) $11.76 B.) SH1.97 C.) $12.19 D.) $13.79 E.) $14.14 5. Which one of the following is an example of an unsystematic risk? A.) A poorly managed company suddenly goes out of business due to slow sales. B.) A key company employee suddenly resigns and accepts employment with a competitor. C.) A well respected chairperson of the Federal Reserve suddenly resigns. D.) A and B E.) B and C Step by Step Solution
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