1.Explain short term bank loans with practical life example.

2.Why short term fund is important in finance?

3. The price of a bond is $970 with a face value of $1000 which is the face value of many

bonds. Assume that the annual coupons rate is 12%, and that there are 10 years

remaining until maturity. What is YTM?

4. Find the price of a semiannual coupon bond given that the coupon rate = 9.5%, the face

value = $1000, the required return = 17%, and there are 13 years remaining until maturity.

5. Find the yield to call on a semiannual coupon bond with a face value of $1000, a 12%

coupon rate, 15 years remaining until maturity given that the bond price is $1175 and it can be

called 9 years from now at a call price of $1050.