# 3 and 4 please

C AIl D, The future value of an a-mily due i.herys p_r identical ondinary annuity what is the maximum amoont od money you" would invest in diapr.t _e_8 of returm A) $ 2,985 to your investment? )S6,000 C)s 2451 3) Joe owns a corporate bond with a coupon rate o" corporate bond with a coupon rate that matures in io Maryon. of 12% that matures in 25 years A) the value of Joe's bond will decrease and the value of Mary's bond will incas B) the value of both bonds will increase C) the value of both bonds will remain the same because they were both parchased in an ean time period before the interest rate changed ) the value of Marys bond will decrease more than he vakled time to maturity 4) A college received a contribution to its endowment fund of S2 million It can never touh the principal, but can use the earnings. At an assumed interest rate of 4 5 pencent how much can the college earn to help its operations each year? A) $93,000 B) 545,000 C) $90,000 D) $81,000 5) AB Corp. pays a dividend of $3 per share. The dividend is expected to grow at a constant ras 4% per year. If AB Corp. stock is selling for S5000 per share, the stockholders expected tar return is A) 15.49%. B) 16.50%. C)10.00% D) 1336% 6) A bond issued by Smith Inc. 10 years ago has a coupon rate of 7% and a face bond will mature in 15 years. What is the value to an investor with a required return ot D) SLO B) $701 A) $837 7) Which of the following statements concerning the constant growth dividend valuato true? year. B) The required rate of return must exceed the growth rate. C) The required rat D) The dividend growth rate must be turn must be equal to the growth rate for dividends. bigger than