You need $2,000 to buy a new stereo for your car. If you have $800 to invest at 5% compounded 11 annually, how long will you have to wait to buy the stereo? A) 6.58 y ears. B) 8.42 years CO 14.58 years D) 15.75 years E) 18.78 years 12. A downward-sloping yield curve that indicates generally cheaper long-term borrowing costs than shot-term borrowing costs i called A) inverted yield curve B) normal yield curve C) flat yield curve D) None of the above 13 A firm has preferred stock outstanding with $100 par value and dividend of 4%. If the market price of the preferred stock is $50, the yield regd rate of return on the preferred stock is A) 4%, B) 6%, C) 8% D) None of the above