a) Suppose you want to buy a new house. you currently have $25,000 and you figure you
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Question:
a) Suppose you want to buy a new house. you currently have $25,000 and you figure you need to have a 10 percent downpayment plus an additional 5 percent of the loan amount for closing costs. Assume the type of house you want will cost about $250,000 and you can earn 7.25 percent per year, how long will it be before you have enough money for the down payment and closing cost?
a) 5.31yrs
b) 5.14
c) 6.02
d) 11.17
what is the current yield to bond with 7 percent coupon rate paid semi-annually, if the bond is priced to yield 9 percent YMT and it has 9years to maturity?
a) 6.42%
b) 7.97
c) 3.98
d) 9
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