Question 2

Suppose Ford Motor Company sold bonds with 8-years maturity, 10 percent coupon rates, and 10 percent market return, calculate the bond value?

Select one:

a. $950

b. $890

c. $1,100

d. $1000

Question 4

You are saving for a new house and you put $10,000 per quarter in an account paying 8 percent compounded quarterly. The first payment is made today. How much will you have at the end of 5 years?

Select one:

a. $24,2973.69

b. $24,7833.17

c. $14,859.47

d. $14,693.28

Question 6

You have $10,000 to invest. Assuming annual compounding, how long will it take for the $10,000 to double if it is invested at an annual interest rate of 14 percent?

Select one:

a. 2.50 years

b. 3.29 years

c. 4.21 years

d. 5.29 years