Question: 5. How much could the same investment in the question above be sold for at the end of the fourth year if interest rate is
5. How much could the same investment in the question above be sold for at the end of the fourth year if interest rate is 4% at that time? 6. Suppose you take out a 5-year loan of $80,000 at 6% APR to purchase a car. How much is the monthly payment? 7. What is the effective annual rate (EAR) of the loan in the question above? 8. Consider a 8-year, $1,000 par, 4.5% bond that pays semi-annual coupons. What is the price of this bond if interest rate is 5% ? 9. Consider a 4-year zero-coupon bond with a par value of $1,000 selling for $871.442. What is the yield to maturity (YTM) of this bond? 0. Consider the same bond in the last question. What would the price of this bond a year later if interest rate at that time is 3.75%
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