You are buying a car and will borrow $17,000. Your banker quotes you an interest rate of 5%. If you choose to pay the loan over 5 years, what will your monthly payment be? 6. a. $320.81 C. $337.06 b. $400.63 d. $312.75 7, what is the Effective Annual Rate (EAR) of an investment that earns 4.96% compounded monthly? 5.23% 5.35% a c. b. 5.07% d. 5.09% 8. An investment results in the following cash flows at the end of each year: Year Amount $150 200 At an interest rate of 6%, the value of this investment at the end of the fourth year will be: a. $817.90 c. $798.12 b. $804.17 d. $811.58 You are buying a 7.2% coupon bond. There are 10 years remaining until maturity. Similar bonds have a yield of 5.5%. What should the price of your bond be? 9. a. $1,045,94 c. $1,036.35 b. $1,102.65 d. $1,128.14 10. The price of an ABC Company bond is $973.00. The bond will mature in 8 years, and the coupon rate is 6%, what is the bond's yield to maturity? a. c. 6.71% 6.79% b. 6,01% d. 6.44% 11. XYZ Company has the right to call its bonds 10 years after the issue date at a price of $1400. Two years later, the bonds are selling at a price of $1,250. If the coupon rate is 8%, what is the bond's Yield to Call? a. c. 7.76% 7.29% b. 7.55% d. 7.68%