Which of the following conditions is not true for an annuity due (AD)?

Group of answer choices

A. PV_AD= Ct /(1+r)^t

B. Annuity due = Ordinary Annuity (1+r)

C. PV_AD = FV_AD/ (1+r)^t

D. FV_AD = PV_AD (1+r)^t

Bond D has a coupon rate of 4%, whereas Bond E has a coupon rate of 14%. Both bonds have 10 years to maturity, $1000 face value, and YTM of 8%. Which of the following statements is true ?

Group of answer choices

A. Bond D has greater price sensitivity to changes in interest rates than bond E.

B. Both bonds are not exposed to interest rate risk as they have the same YTM.

C. Bond D has higher price than bond E

D. Bond D has lower price sensitivity to changes in interest rates than bond E.

Calculate the value of a bond (to the nearest dollar) that pays annual coupon rate of 7%, has a face value of $1,000 that matures in 5 years if the current yield to maturity on an equivalent security is 7%.

Group of answer choices

A. $893

B. $1,000

C. $922

D. $602

If you invest $20,000 at an annual interest of 10% for 7 years, how much money (to the nearest dollar) would you have accumulated ?

Group of answer choices

A. $22,000

B. $25,325

C. $29,607

D. $38,974