QUESTION 12 Assume a $200,000 mortgage with APR = 12%. In addition, the loan is a 1-year balloon with a 25-year amortization. What is the monthly payment? 0 a $1,556 Ob.$2,106 O $1,107 O d. $3.208 QUESTION 13 Discount bond is a bond which after its original issue makes only one payment upon its maturity. This single payment accounts for repayment of principal (i.e., amount borrowed) plus interest. Consider discount bond G and discount bond C. Both G and Chare the same face value and the same maturity. Bond G is a treasury bond and bond C is a corporate bond All else equal The Present Value of G is greater than the Present Value of C Ob of C The Present Value of G is the same as the Present Value The Present Value of G is less than the Present Value of C Cannot tell QUESTION 14 A financial instrument that you own promises an annual payment at the end of every year for ever. The first payment you will receive will equal $2,000. Payments will grow at an amual 2.3%. If the annually compounded discount rate is 7.3%, what is the value of your instrument today? 0 a $50.000 ob.$30,000 $20,000 O d. $40.000 QUESTION 15 You decided to invest your wealth of $10,000 in a portfolio of three stocks. You also decided to sell stock I short and collect $3,000. After the short sale you will invest 58,000 of your cash in stock 2 and the remainder in stock 3. The expected rate of retum of stock 2 is R2 = 18% and of stock 3 is R3 = 22%. What should the rate of return on stock l be for the portfolio rate of return to equal 10%? 02-6.22% 6.26.44% O c.21.33% O d. 9.83%