Question 20 Allison just received her semiannual payment of $35 on a bond she owns. Which term refers to this payment? Coupon Yield. Discount Call premium Face value 2. ULTRA FAST HZ GAMING DISPLAY George Jefferson established a trust fund that provides $175,500 in scholarships each year for worthy students. The trust fun earns a 4 percent rate of return. How much money did Mr. Jefferson contribute to the fund assuming that only the interest income is distributed (i.e., what is the present value of the fund)? $4,212,000 $7,020,000 $3,096,873 $4,387,500 $5,265,000 7 ULTRA FAST HZ GAMING DISPLAY Question 22 1 p You are considering the purchase of a new machine. Your analysis includes the evaluation of two machines that have differing initial and ongoing costs and differing lives. Whichever machine is purchased will be replaced at the end of its useful life. You should select the machine that has the: Highest equivalent annual cost. Lowest equivalent annual cost. Lowest annual operating cost. Longest life. Highest annual operating cost. 2 ULTRA FAST HZ GAMING DISPLAY Question 23 1 pts The Corner Grocer has a 7-year, 6.5 percent semiannual coupon bond outstanding with a $1,000 par value. The bond has a yield to maturity of 5.5 percent. Which one of the following statements is correct if the market yield suddenly increases to 7 percent? The bond price will increase by 7.04 percent The bond price will decrease by 8.02 percent. The bond price will increase by 5.16 percent. The bond price will decrease by 6.24 percent. The bond price will increase by 3.86 percent. 7 ULTRA FAST HZ GAMING DISPLAY