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inimum and maximum: 17 The collar of a floating-rate bond refers to the minimum A) call periods. B) matunity dates C) yields to maturity D) coupon rates. E) market prices. 18) You would like to provide $125,000 a year forever for your heire must you deposit today to fund this goal if you can earn a guarante return? A) $2,321,212 weirs. How much monty canteed 4.5 percent tatt of B) $2,858,122 C) $2,777,778 D) $2,850,000 E) $2,666,667 101 The interest rate that is most commonly quoted by a lender is referred to as the A) common rate. B) simple rate. C) annual percentage rate. D) compound rate. E) effective annual rate. ed to as the: 15 20) HCC, Inc., expects its dividends to grow at 25 percent per year for the next seven years before levelling off to a constant 3 percent growth rate. The required return is 11 percent. What is the current stock price if the annual dividend per share that was just paid was $1.05? A) $43.21 B) $38.93 C) $39.96 D) $32.11 E) $44.36 21) Today, you have two coins each of which is valued at $100. One coin is expected to appreciate by 5.2 percent annually while the other coin should appreciate byl po annually. What will be the difference in the value of the two coins 50 years from A) $337.43 B) $318.04 C) $191 79 D) $380.15 E) 20) 2) A newly issued 10-year, $1,000,zero Coupon hond ist sold for S311.05. Wh implicit interest, in dollars, for the first year of the bond's life? Assume sem compounding. A) S41.47 B) $45.89 C ) $5763 D) $47.72 21) coupon bond just sold for $311.05. What is the 30 years from now? 15 E) $128.32 " Assume semiannual 22) - *1.72 E) $38.53

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