Question: SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question 4) How much should you pay for a bond

 SHORT ANSWER. Write the word or phrase that best completes each

SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question 4) How much should you pay for a bond with $1,000 face value, a 14 percent coupon rate. and five years to maturity it your appropriate discount rate is 10 percent and interest is paid semiannually? MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answer the question. 5) The present value of $5,000 received at the end of 5 years, discounted at 10 percent is closest to 5) A) 53,105 B) 8620 C) 5823 D) $3,403 6) You plan to deposit $400 at the end of each year for 16 years in an account that pays 9 percent compounded annually. The terminal value at the end of the 16 year period is closest to A) 513,201 B) 519.329 C) $17,667 D) 59,634 7) The present value of $100 per year received for 10 years discounted at 8 percent is closest to A) 5425 B) $671 C) 5M2 D) $177 8) Find the future value of $400 in six years if the 8 percent annual interest is compounded monthly 8) A) 5634.75 B) $39947 C) $645.40 D) 561238 9) How much should you pay for a bond with $1,000 face value, an 8 percent coupon rate, and seven years to maturity if your appropriate discount rate is 10 percent and interest is paid annually? Answers are rounded to the nearest dollar, A) 5903 B) 5560 C) $1,104 D) $1,000

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