Word File Edit View Insert Format Tools Table Window Help Search in Document Home Design Layout References Share Pages Table Illustrations Add-ins Media Links Comment Header & Te Footer e.-728 years 14. Which of the following statements is CORRECT a. A bond is likely to be called if it sells at a discount below par. b. A bond is likely to be called if it sells at a premium above par c. A bond is likely to be called if its market price is equal to its par value d. A bond is likely to be called if its market price is below its par value. Credit card issuers must by law print their Annual Percentage Rate (APR) on their monthly statements. If the APR is stated to be 15%, with interest paid monthly, what is the EFF% on the card? 15. 15.59% b. 16.71% c. 17.10% d. 16.08% e. 12.91% You plan to invest S5,000 at the end ofeach of the next 10 years in an account that has a 9% nominal rate with interest compounded monthly. How much will be in your account at the end of the 10 years? 16. b. $967,571 How much would $10,000 due in 100 years be worth today if the discount rate were 10%? a. $0.73 b. $1.21 c. $2.49 d. $4.83 e. $6.30 17. 18. Walker Corporation is planning to issue new 20-year bonds. Initially, the plan was to make the bond non- callable. If the bond were made callable after 5 years with a 5% call premium, how would this affect the bond's required rate of return? It is impossible to say without more information. b. Because of the call premium, the required rate of return would decline a. 103% Focus 2