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You are borrowing money to buy a car. If you can make payments of $300 per month starting one month from now at an interest

You are borrowing money to buy a car. If you can make payments of $300 per month starting one month from now at an interest rate of 5% per annum, how much will you be able to borrow for the car today if you finance the amount over four years?

Select one:

a. $13,026.89

b. $15,587.88

c. $5,423.15

d. $1,063.79

Clear my choice

Question 2

Suppose you have an investment opportunity that requires a $1,000 investment today and will have a $2,000 payoff in seven years. What is the annual rate of return on the investment?

Select one:

a. 9.05%

b. 10.41%

c. 12.25%

d. 14.87%

Clear my choice

Question 3

An Australian Government bond with a face value of $1,000 and an annual coupon rate of 5.5% matures in seven years, pays interest semi-annually, and has a yield to maturity of 6.2%. What is the price of the bond right after it makes its first coupon payment?

Select one:

a. $960.73

b. $947.21

c. $945.08

d. $963.01

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