Suppose you borrowed $14,000 at a rate of 10% and must repay it in 5 equal installments at the end of each of the next 5 years. How much interest would you have paid in total by the time the loan is paid off?  

Suppose you are buying your first home. You have arranged to finance the purchase from a 30-year mortgage loan at a 6% annual interest rate with monthly payments starting one month from now. The maximum you can afford to pay monthly is $1,500. What is the size of the mortgage loan you can borrow?

The current beta of a portfolio is 1.5. The current Treasury bond yield is 4%, and the market risk premium is 6%. If the portfolio beta declines to 1.0, the market risk premium increases to 8%, and inflation declines from 3% to 2%, the required return of the portfolio is

The ____ the investor’s required rate of return on a bond, the ____ will be the value of the bond to the investor.

The yield curve shows

The risks arising factors unique to a firm are

Kelly has figured out the college savings plan for her just born baby daughter. She plans to invest $10,000 now in a stock index fund and invest $500 at the end of each month for a period of 18 years. The expected rate of return of the index fund is 9% per year. How much would Kelly have saved when her daughter turns 18 years old?

The standard deviation of returns of stock A is 25%, with an expected return of 15%. This means 

Given the following information, which statement is correct? Standard deviation of stock A is 22%. Standard deviation of stock B is 14%. The expected return of A is 18% while the expected return of B is 10%. Risk-free rate is 3%. Market risk premium is 6%. 

Suppose the 1-year T-bills currently yield 7.00%, and the future inflation rate is expected to be constant at 2.40% per year. What is the real risk-free rate of return, r*?