Someone offers to buy your car for five, equal annual payments, beginning 6 years from today. If you think that the present value of your car is $11,500.00 and the interest rate is 8%, what is the minimum annual payment that you would accept?

Multiple Choice

• $3,808.83

• $4,655.23

• $4,232.03

• $5,078.44

Suppose you buy a new car right now with the total expense equals $13,500.00. How much would you have needed to invest 19 years ago in an account paying 9% compounded annually to cover this amount?

Multiple Choice

• $2,625.61

• $3,150.73

• $2,888.17

• $2,100.49

A project has a beta of 0.93, the risk-free rate is 3.07%. What's the return for market portfolio if the expected return is 11.98%?

Multiple Choice

• 12.65%

• 15.18%

• 10.12%

• 18.98%

Rosita purchased a bond for $992.23. She sold the bond for $1,002.20 after 6 months and earned a total return of 5.30% on this investment. Suppose this bond has semiannual interest payments, then what should be the coupon rate of it?

Multiple Choice

• 8.52%

• 6.82%

• 4.26%

• 10.23%