$1.$Todd is able to pay $$175$ a month for five years for a car. If the interest rate is $4\mathrm{.}9$ percent, how much can Todd afford to borrow to buy a car?$$ A$.$$$6,961\mathrm{.}36$ B$.$$$8,499\mathrm{.}13$ C$.$$$8,533\mathrm{.}84$ D$.$$$8,686\mathrm{.}82$ E$.$$$9,295\mathrm{.}922.$You are the beneficiary of a life insurance policy. The insurance company informs you that you have two options for receiving the insurance proceeds. You can receive a lump sum of $$50,000$ today or receive payments of $$641$ a month for ten years. You can earn $6\mathrm{.}5\%$ on your money. Which option should you take and why?$$ A$.$You should accept the payments because they are worth $$56,451\mathrm{.}91$ today. B$.$You should accept the payments because they are worth $$56,523\mathrm{.}74$ today. C$.$You should accept the payments because they are worth $$56,737\mathrm{.}08$ today. D$.$You should accept the $$50,000$ because the payments are only worth $$47,757\mathrm{.}69$ today. E$.$You should accept the $$50,000$ because the payments are only worth $$47,808\mathrm{.}17$ today. $3.$What is the future value of $$1,000$ a year for five years at a $6\%$ rate of interest?$$ A$.$$$4,212\mathrm{.}36$ B$.$$$5,075\mathrm{.}69$ C$.$$$5,637\mathrm{.}09$ D$.$$$6,001\mathrm{.}38$ E$.$$$6,801\mathrm{.}914.$Calculate the YTM on a bond priced at $$1,036$ which has $2$ years to maturity, a $10\%$ annual coupon rate, and a return of $$1,000$ at maturity.$5.$Which of the following amounts is closest to the value of a bond described in The Wall Street Journal as $10$s $2017?$ It is January $1,2009$ and the appropriate interest rate is $11\%.$ Assume that the bond matures in the same month as when the quote is given, that interest payments are made twice a year, and that an interest payment has just been made.$$ A$.$$$718\mathrm{.}28$ B$.$$$874\mathrm{.}17$ C$.$$$895\mathrm{.}38$ D$.$$$947\mathrm{.}69$ E$.$$$1,000\mathrm{.}00$