A bond offers 2,9% coupon rate with semi-annual payments. If the face-value of this bond is $10,000,
Question:
A bond offers 2,9% coupon rate with semi-annual payments. If the face-value of this bond is $10,000, what is the value of the coupon payments?
2. Assume that a bank has a TDS requirement of 0,49.
If heat costs $200/month, property taxes are at $100/month, and you have an outstanding car loan of $450/month, what is the maximum mortgage amount you could afford, assuming a 2,0% compounded semi-annually and an amortization period of 25 years if you have a monthly income of $6 000.
3. You take out a car loan of $24 906 at a rate of 3,1% compounded annually and a term of 5 years with bimonthly payments.
At the end of the 2nd year, what is the total amount of interest paid on the loan?
4. It has a a current coupon rate of 3,0% paid semi-annually and a face-value of $20 000. If it is sold on August 8th, 2023, to yield the buyer a 4,5% return compounded semi-annually, what will the purchase price be?
Fundamentals Of Corporate Finance
ISBN: 9781292437156
5th Global Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford