Please answer all

13) If $22,050 is the amount payable in two years for a $20,000 simple loan made today, the interest rate is

A) 5 percent.

B) 10 percent.

C) 22 percent.

D) 25 percent.

14) If a security pays $110 next year and $121 the year after that, what is its yield to maturity if it sells for $200?

A) 9 percent

B) 10 percent

C) 11 percent

D) 12 percent

15) The ________ of a coupon bond and the yield to maturity are inversely related.

A) price

B) par value

C) maturity date

D) term

16) A $10,000 8 percent coupon bond that sells for $10,000 has a yield to maturity of

A) 8 percent.

B) 10 percent.

C) 12 percent.

D) 14 percent.

17) Which of the following bonds would you prefer to be buying?

A) A $10,000 face-value security with a 10 percent coupon selling for $9,000

B) A $10,000 face-value security with a 7 percent coupon selling for $10,000

C) A $10,000 face-value security with a 9 percent coupon selling for $10,000

D) A $10,000 face-value security with a 10 percent coupon selling for $10,000

18) If a $10,000 face-value discount bond maturing in one year is selling for $5,000, then its yield to maturity is

A) 5 percent.

B) 10 percent.

C) 50 percent.

D) 100 percent.

19) If a $5,000 face-value discount bond maturing in one year is selling for $5,000, then its yield to maturity is

A) 0 percent.

B) 5 percent.

C) 10 percent.

D) 20 percent.

20) If the interest rate is 5%, what is the present value of a security that pays you $1, 050 next year and $1,102.50 two years from now? If this security sold for $2200, is the yield to maturity greater or less than 5%? Why?