Reference no: EM132553483

Question 1: What annual deposits are needed for 10 years to provide for a perpetuity of $3000 per year with the 1st payment due at the end of 11, 1 year after the final deposit with J1= 8% p.a

A. $2,588.61

B. $8,696.20

C. $2,885.26

D. $2,585.16

Question 2: A coupon bond is purchased for $900 with the maturity period of 6 years. the coupon payment of $50 is to be paid at the end of each half year. if the desired rate of return(yield rate) is J2=12% p.a, then the face value of the bond is:

A. $976.84

B.$480.81

C. $863.46

D. $967.48

Question 3: A loan of $500 is to be paid with 1 payment of $600 in 6 months. the simple interest charged per-annum on the loan is:

A. 3.09% p.a

B. 32.71% p.a

C. 30.09% p.a

D. 37.02% p.a

Question 4: A loan of $500 is to be paid with two payments of $300, one in 3 months and another in 6 months. Th compound interest charged on the loan is:

A. 8.63% p.a

B. 4.18% p.a

C. 8.36% p.a

D. 4.82% p.a