You buy an investment such that it pays you $1,000 annually, starting today, and all future payments grow at a rate of 2%. If the payment last forever and the applicable interest rate is 5% with semi annual compounding. What is the investment worth today?

1. 32,648
2. 33,333
3. 34,333
4. 35,000

Which theory states that the shape of the yield curve is determined by supply and demand forces associated with two general group of investors; those that like to buy short-term bonds and those that like to buy long term bond?

1. Expectation Hypothesis
2. Market segmentation Hypothesis
3. Liquidity preference Hypothesis
4. Fisher Separation Theorem

If you are to make a payment of 50,000 in 6 years. What is the value of this payment today if the stated interest rate is 7% with continuous compounding?

1. 76,098
2. 53,625
3. 46,620
4. 32,852

If the nominal rate of interest is 6% and the real rate of interest is 3%, what is the approximate expected inflation rate?

1. 9%
2. 6%
3. 3%
4. -3%

Youve determine that you need to have 450,000 in the bank when you retire. If you make monthly deposits for the next 30 years and the applicable EMR is 0.50% what would have to be the value of your monthly savings to fund your retirement?

1. $448
2. $796
3. $2,698
4. $13,941