Question 5: A bond has an annual coupon rate of 7% and will be discounted to its face value ($1000) in one year. The market rate is 8%. What is the bonds price today?

A. $ 990.74

B. $ 995.37

C. $ 982.17

D. $ 991.08

Question 6 : The company AFENTIKO has just given a dividend of 30 cents per share. Dividends are expected to increase by 5% per year. The required return on equity is 17% per year. What is the intrinsic value of the stock?

A. $ 2.63

B. $ 17.25

C. $ 1.76

D. $ 1.85

Question 7: How much do you need to save each month to raise $10,250 in five years? The annual market rate is 12%.

A. $ 126

B. $ 1613

C. $ 2843

D. $ 228

Question 8: A customer will deposit $ 2500 at the beginning of each month. The annual interest rate on deposits is 3%. How much money will he have collected after 15 years?

A. $ 46497.28

B. $ 47892.20

C. $ 567431,72

D. $ 568850,30

Question 9 : Your customer is interested in becoming an up-and-coming investor and is thinking about where to go best. As an investment advisor, tell him your opinion. All it tells you is that it wants to be risk-averse. You would advise him to:

A. Invest in shares

B. Invest in government bonds

C. Invest in mutual funds

D. Do both B and C