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You are looking at an account statement from your bank, Madoff Mutual.  You note that the statement has listed an nominal rate of 8.0%.  You believe inflation is going to be 5.25%.  You were planning to invest $100 in this account.  If you are correct about inflation, how much would you have in the account at the end of 1 year, and how much would it be worth in today’s dollars?

The Ford Prefect Company has bonds outstanding with a face value of $1,000 that reach maturity in 15 years.  The bond’s indenture indicates that the stated coupon rate for this bond is 12% and that the coupon payments are to be made semiannually.  Assuming the appropriate YTM on the bond is 7%, then the price that this bond trades for will be closest to:

The Ford Prefect Company has bonds outstanding with a face value of $1,000 that reach maturity in 15 years.  The bond’s indenture indicates that the stated coupon rate for this bond is 10% and that the coupon payments are to be made semiannually.  Assuming the appropriate YTM on the bond is 6%, then the price that this bond trades for will be closest to:

Suppose you deposited $5,000 in a TFC bank account that pays 5% with daily compounding and a 360-day year.  How much could you withdraw after 5 months, assuming each month has 30 days?

Consider the following timeline:If the current market rate of interest is 5%, then the future value of this timeline as of year 3 is closest to:

If you buy shares of Coca-Cola on the primary market:

Dagny Taggart has just purchased a home and taken out a $300,000 mortgage. The mortgage has a 30-year term with monthly payments and has an APR of 4.4%. The total amount of principal that Dagny will pay during the first three months of her mortgage is closest to:

Dagny Taggart has just purchased a home and taken out a $500,000 mortgage. The mortgage has a 30-year term with monthly payments and has an APR of 3.4%.The total amount of principal that Dagny will pay during the first three months of her mortgage is closest to:

Use the following timeline to answer the question(s) below. At an annual interest rate of 7%, the present value of this timeline in year 0 is closest to:

Use the following information to answer the question(s) below. Consider the following four alternatives: 1. $132 to be received two years from now.2. $160 to be received five years from now. 3. $200 to be received eight years from now. 4. $220 to be received ten years from now. The ranking of the four alternatives from most valuable to least valuable if the interest rate is 7% per year would be: