FNAN 522 Module 2 Homework - University of Louisiana, Lafayette. Questions & Answers.

A company issues a bond with the provision that it may pay off the debt early. This bond is subject to which type of risk? Select one: a. All of the above. b. Model risk. c. Prepayment risk. d. Interest rate risk. What will $247,000 grow to be in 9 years if it is invested today in an account with an annual interest rate of 11%? Select one: a. $351,268.46 b. $631,835.12 c. $637,365.32 d. $96,558.42 Approximately how many years will it take for $136,000 to grow to be $468,000 if it is invested in an account with an annual interest rate of 8%? Choose the closest answer. Select one: a. 16 years. b. 11 years. c. 21 years. d. Error 5. At what annual interest rate must $137,000 be invested so that it will grow to be $475,000 in 14 years? Choose the closest rate. Select one: a. 11.58% b. 9.29% c. 15.69% d. 3.2% If you wish to accumulate $197,000 in 5 years, how much must you deposit today in an account that pays a quoted annual interest rate of 13% with semi-annual compounding of interest? Round to the nearest dollar