26.You just inherited $10,000. You are investing this money for 4 years at 5% compounding interest. In whole dollars, how much money will you have at the end of the four years?

$11,000

$12,100

$12,155

$12,000

27.What's value of a preferred stock if we assume it has a quarterly preferred dividend $2 per share and the required rate of return is 8%?

$ 25

$ 64

$ 50

$ 100

28.Assume that interest rates on 20-year Treasury and corporate bonds with different ratings, all of which are noncallable, are as follows: T-bond = 3.72%; A = 5.64%; AAA = 5.72%; BBB = 5.18%. The differences in rates among these issues were most probably caused primarily by:______

a. Tax effects.

b. Default risk premium.

c. Maturity risk premium

d. Liquidity risk premium.