Fin 3000 - version 4 12. What's the interest rate on a 10-year $9,000 loan that requires fixed annual payments of $1,000? A. 1.9% B. 2.2% C. 24% D. 2.0% E none of the above 13. The long-term bonds of Topstone Industries have a face value of $1,000 and are currently seling for S900. The issue matures in 10 years and has a coupon rate of 9%. The coupons are paid semiannually. What is the yield to maturity? A. 10.65% B. 11.75% C. 5.32% D. 10.00% E none of the above gars Meats, Inc. currenty pays no dividends. The firm plans to pay its frst dividend at the end of yearn he first d id end wil be $1.00 and dvidends are expected to grow at 5% thereafter. the 3rd Given a required return of 12%, what would you pay for the stock today? A $10.17 B. $14.29 C. $11.39 D. $12.76 E none of the above 15. Treasury bills currently yield 5%. The expected return on the market portfolio is 8%. What is the market risk premium? A.3% B. 11% C.8% D.596 E. none of the above Aportfolio has 50% ofits funds in stock A and 50% in stock B. The correlation between stocks A and B is 0.5. Stock A's beta is 0.8, stock B's beta is 1.2. How much is the portfolio beta? A. 0.6 B. 1.0 C. 1.1 D. 2.2 E. none of the above 16. You plan to save $5,000 per year for your newborn child's college expenses. How much money will you have saved in 18 years if the interest rate is 9% per year? A $192,634 17. B. $90,000 C. $238,972 D. $206,507 E none of the above