Question: QUESTION 10 How long will it take $50,000 placed in a savings account at 10% interest to grow into $75,000? a. 5.25 years O b.

 QUESTION 10 How long will it take $50,000 placed in a

QUESTION 10 How long will it take $50,000 placed in a savings account at 10% interest to grow into $75,000? a. 5.25 years O b. 5.00 years c. 4.75 years d. 4.25 years QUESTION 11 What is the present value of the following stream of cash flows if the discount rate is 6%? Year 1 $-280 Year 2 $450 Year 3 $-190 Year 4 $230 a. $159.00 b. $1,006.36 c. $582.68 d. $-159.00 QUESTION 12 Which of the following statements is false? a. When the YTM is lower than the coupon rate, the bond will be traded at a premium. b. When the YTM is higher than the coupon rate, the bond will be traded at a discount. c. The longer the time to maturity, the less sensitive the market price of the bond becomes to changes in YTM d. The higher the coupon rate, the less sensitive the market price of the bond becomes to changes in YTM DOO

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