1. Allied industrial bonds have a coupon rate of 12% and pay interest annually. The bonds have a par value of $1,000 and mature in 30 years. If investors require a return of 8% on these bonds. How much should these bonds sell for?

2. You are considering the purchase of an investment that will pay you $17,000 per year for 15 years. Assuming the required return on this investment is 7.0%, how much should the investment cost? Round it to a whole dollar, and do not include the $ sign or comma, e.g.,12345.

3. Suppose you borrow $24,000 from your bank to buy a car. You agree to pay $463.25 per month for 60 months. What is the APR for the loan?

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