The peesent value of $1.000 received at the end of year 1, $1,200 received at the end of year 2 and $1,300 received at the end of year 3, assuming in opportunity cost of 7 percent, is A) $2,500 B) $3,044 c) $6,516 D) $2,856 S. The future value of $200 received today and deposited at 8 percent compounded aomiennually for three years is A)$380 B) $158 C) $253 D) $252 . Ifa United States Savings bond can be purchased for $29.50 and has a maturity value of $100 at the end of 25 years, what is the annual rate of retum on the bond? A) 5 percent B) 6 percent C) 7 peroent D) 8 parcent to. Dorothy borrows $10,000 from the bank. For a four-year loan, the bank requires annual end- of year payments of $3,223.73. The annual interest rate on the loan is A) 9 percent B) 10 percent C) 11 percent D) 12 percent The value of any asset is the 2. A) sum of all future cash flows it is expected to provide over the relevant time period B) sum of the present values of all future cash flows it is expected to provide over the relevant time period C) present value of the sum of all future cash flows it is expected to provide over the relevant time period D) sum of all compounded future cash flows it is expected to provide over the relevant time period Corpotate bonds have a 13. A) face value of $5,000 B) market price of S1,000 C) specified coupon rate paid annually D) par value of $1,000 A type of long-term financing used by both corporations and govenment entities is 14. A) common stocks B) bonds C) preferred stocks D) retained earnings The value of a bond is the present value of the 5 A) dividends and maturity value B) interest and dividend payments C) maturity value D) interest payments and maturity value