You are planning to buy a new caravan to make a trip around Australia. The cost...
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You are planning to buy a new caravan to make a trip around Australia. The cost of the van is $225,000 and you can get a loan from the bank for that amount. If you can get a fifteen year loan at 8.75% per annum compounded fortnightly, how much do you need to pay every fortnight? (5 marks) (Total 11 marks) a) What is the value of a 9% bond that matures in 5 years, pays interest semi-annually, has a face value of $1000, when the current market yield is 5.5% per annum? (5 marks) You are planning to buy a new caravan to make a trip around Australia. The cost of the van is $225,000 and you can get a loan from the bank for that amount. If you can get a fifteen year loan at 8.75% per annum compounded fortnightly, how much do you need to pay every fortnight? (5 marks) (Total 11 marks) a) What is the value of a 9% bond that matures in 5 years, pays interest semi-annually, has a face value of $1000, when the current market yield is 5.5% per annum? (5 marks)
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