Reference no: EM13381192

Mr. Smith has a 10-year mortgage of $375,000 with an interest rate of 6.5% APR compounded semi-annually. Mortgage payments are made at the beginning of each month. What is the balance remaining on this mortgage in 5 year's time?

Choose one answer.

                 a. $187,500        

                 b. $215,325       

                 c. $216,077        

                 d. $217,231       

                 e. $217,623

Given the following information, calculate the rate of return.

Price = $282.51

Time to maturity = 10 years

Annual payment = $50

Choose one answer.

                 a. 10% 

                 b. 10.5%             

                 c. 11% 

                 d. 11.5%             

                 e. 12%

We observe a stock selling for $20 per share. The next dividend is expected to be $1 per share. We think that the dividend will grow by 10% indefinitely. What is the dividend yield on this stock?

Choose one answer.

                 a. 5%   

                 b. 10% 

                 c. 15% 

                 d. 20% 

                 e. 25%