2 . ..what is the ( APR) on a loan with an effective annual interest (EAR) of 14.97percent and weekly compounding interest of interest?

a. 13.97 b.14.35 c. 14.22 d. 14.49

Which of the following statements is false? Select one: a. The nominal interest rate is determined by the real interest rate and the expected rate of inflation. b. Zero coupon bonds are deep-discount bonds. C. Zero coupon bonds are often created when cash flow is stripped from traditional bonds. d. Floating rate bonds provide protection against decreasing interest rates. What is the price of a 10-year, 8-percent, semi-annual coupon bond when the market rate is 6 percent? The face value is $1000. Select one: a. $913.42 b. $595.10 O C. $614.72 d. $707.71 Which of the following bond prices is most sensitive to market rate changes? The par value is $1000 for all. Select one: a. 3-year, 8-percent coupon rate, yield 5.6 percent b. 10-year, 4.5-percent coupon rate, yield 5.5 percent c. 7.5-year, 4.5-percent coupon rate, yield 5.5 percent O d. 5-year, 5-percent coupon rate, yield 5.5 percent Which of the following statements is incorrect? Select one: a. The liquidity preference theory states that investors prefer short-term debt. b. A debt rating of AAA is a worse rating than BB. C. According to the expectations theory, a downward-slopping yield curve implies that interest rates are expected to decline in the future. d. The risk premium in the bond yield reflects default risk, liquidity risk, and issue-specific features