Fin 350 Second Exam Sample Questions

Fin 350 Second Exam Sample Questions - FIN 350 Business...

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FIN 350 Business Finance Spring 2010 Professor Balkanska Second Exam Sample Questions 1. You need to borrow $23,500 to buy a truck. The current loan rate is 5.9% compounded monthly and you want to pay the loan off in equal monthly installments over 5 years. What is your monthly payment? a. $391.67 b. $451.01 c. $453.23 d. $463.64 e. $471.32 2. The National Bank offers personal loans at 8 percent compounded monthly. The Global Bank offers similar loans at 8.25 percent compounded quarterly. Which one of the following statements is correct concerning these two banks? a. The National Bank loan has an effective rate of 8.27 percent. b. The National Bank loan has an effective rate of 8.33 percent. c. The National Bank loan has a higher effective rate than the Global Bank loan. d. The Global Bank loan has an effective rate of 8.30 percent. e. The Global Bank loan has an effective rate of 8.51 percent. 3. The bonds of Quality Manufacturing, Inc. have an 8 percent coupon and pay interest annually.
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Fin 350 Second Exam Sample Questions - FIN 350 Business...

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