# A yield curve or term structure of interest rates is

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16) A yield curve or term structure of interest rates is: _________a)Upward sloping if yields increase with maturity.b)Downward sloping if yields decrease with maturityc)Upward sloping if yields decrease with maturityd)Both a & b are correct
17) If the yield to maturity for a bond is less than the bond's coupon rate, then the market value of the bond is: _______
18) Your father gave you a gift of \$20,000 for good behavior and you wanted to invest in the stock market. How much will your investment grow in five years, assuming that you earned 8% each and every year?
19) How much is eight \$2000 payments worth to us today discounted at 7%?
20) What is the present value of \$50,000 discounted at 15% for 10 years?
21) If I made seven, \$1000 payments into a 401(k) account, how much would my account be worth after 20 years if I made 13% a year during that investment?
22) What is the value of a \$100 investment that earned 6% per year for five years?
23) What is \$1 million discounted at 10% for four years worth to us today?
24) You won the lottery and paid you \$100,000 per year for the next 10 years. Assuming that you placed your winnings in an investment account, how much would that amount grow if you earned 6% during that time period?
25) What is the present value of \$500 discounted at 5% for five years?
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