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