1. What kinds of securities are available in the capital markets? How are the worldwide security markets organized?
2. The salesperson offers, "Buy this new car for $25,000 cash or, with an appropriate down payment, pay $500 per month for 48 months at 8% interest." Assuming that the salesperson does not offer a free lunch, calculate the "appropriate" down payment.
a. $1,000.00
b. $4,519.04
c. $5,127.24
d. $8,000