Years. The bond is currently quoted at 98.7. What is the clean price of this bond if the next interest payment occurs 4 months from today? A$1,002.00 B$1,022.50 C$987.00 D$994.50 E$1,011.25 7 Agency problems are most associated with: A) limited partnerships. B) corporations. C) sole proprietorships. D) general partnerships. E) limited liability companies.
8 A general partner: A) receives a salary in lieu of a portion of the profits. B) has no say over a firm's daily operations. C) has a maximum loss equal to his or her equity investment. D) is personally responsible for all partnership debts. E) faces double taxation whereas a limited partner does not.
9 Al's obtained a discount loan of $68,500 today that requires a repayment of $88,000, 3 years from today. What is the APR? A) 8.90 percent B) 8.57 percent C) 8.71 percent D) 8.01 percent E) 7.87 percent.
10 You need some money today and the only friend you have that has any is a miser. He agrees to loan you the money you need, if you make payments of $30 a month for the next six months. In keeping with his reputation, he requires that the first payment be paid today. He also charges you 2 percent interest per month. How much total interest is he charging? A) $3.60 B) $4.68 C) $9.50 D) $8.60 E) $4.50.
11 You are seeking a fixed-rate mortgage of $195,000 with a term of 30 years. Your bank quotes an APR of 6.2 percent, compounded monthly. You can only afford monthly payments of $1,000, so you offer to pay off any remaining loan balance at the end of the loan term in the form of a single balloon payment. What will be the amount of the balloon payment? A) $202,828.59 B) $194,480.18 C) $232,191.91 D) $226,315.07 E) $173,316.67.
2 At 5 percent interest, how long would it take to triple your money? A) 25.85 years B) 22.52 years C) 25.64 years D) 24.87 years E) 20.01 years.
