File Edit View History Bookmarks Profiles Tab Window Help `getproctorio.com/secured# Get the Chrome Extension Question 10 - Midterm 2 (Ch 2% ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%25... Midterm 2 (Ch. 4. 5, 6) Saved Help Save & Exit 10 After reading the fine print in your credit card agreement, you find that the "low" interest rate is actually an 18% APR, or 1.5% per month. What is the effective annual rate? 5 00:32:49 Multiple Choice O 18.47% 19.56% 18.82% O 19.41% Mc 11 How much interest will be earned in the next year on an investment paying 12% compounded annually if $100 was just credited to the account for interest? Multiple Choice 00:32:38 O $88 O $100 O $112 O $200Midterm 2 (Ch. 4, 5, 6) @ Saved Help Save & Exit 12 Three thousand dollars is deposited into an account paying 10% annually to provide three annual withdrawals of $1,206.34 beginning in one year. How much remains in the account after the second payment has been withdrawn? 25 00:32 32 Multiple Choice O $1,326.97 O $1,206.34 O $1,096.69 O $587.32 Mc Midterm 2 (Ch. 4, 5, 6) i Saved 13 Which one of the following is included in the yield of a bond with a low credit rating but not included in a Canadian Treasury bond yield? 00:32:25 Multiple Choice O Real rate of return O Inflation premium O Default premium O Loss of premium Mc The yield curve depicts the current relationship between: 14 Multiple Choice 8 00:32:21 O bond yields and default risk. O bond maturity and bond ratings. O bond yields and maturity. O promised yields and default premiums.Midterm 2 (Ch. 4, 5, 6) i Saved 15 What price will be paid for a Canadian Treasury bond with an ask price of 135.4062 if the face value is $100,000? Multiple Choice 00:32:15 O $100,135.41 O $135,000.41 O $136,269.38 O $135,406.20Midterm 2 (Ch. 4, 5, 6) i Saved A bond's yield to maturity takes into consideration: 16 Multiple Choice 00:32:11 O current yield but not any price changes. O price changes but not the current yield. O both the current yield and any price changes. O neither the current yield nor any price changes.Midterm 2 (Ch. 4, 5, 6) i Saved Help Save 17 An investor buys a 10-year $1,000, 7% coupon bond for $1,050, holds it for 1 year, and then sells it for $1,040. What was the investor's rate of return? Multiple Choice 00-32:05 O 5.71% O 6.00% O 6.67% O 7.00%