Unformatted text preview: = $1000/$5000= 20%. The answer is C Q10. If a similar security sold today pays $110 in one year then the interest rate is 10%. Choose between $500 today or $665.50/(1.1)^3 = $500 The answer is B. Q11. ; the answer is C. Q12. ; the answer is B Q13. i db = = 22.22%; The answer is A. Q14. ; the answer is C Q15. Initial price = . Price in one year is : Rate of capital gain is: Capital gain = (P t+1 P t ) / P t – Capital gain = (P t+1 P t ) / P t = (683.0135401.8776)/401.8776=69.95%. The answer is D....
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 Spring '09
 5%, Q7., $5000, $110, 5.3%

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