1. If you borrowed $200,000 at an annual rate of 8.00% for a period of 10 years and repayed it with 10 equal annual year-end payments of $29,805.90, then what type of loan did you repay?
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If you took out a discount loan and borrowed $100,000 at 10% annual interest for eight years, what is the annual repayment (before maturity) of the discounted loan?

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The table below summarizes the estimates provided by the investment banking firm your company has hired. The investment banking company has estimated how much your company's new bond issue will likely sell for under several different economic conditions. What is the expected (average) selling price of the bond?

	recession	stand still	Boom
possibility	.65	.25	.10
bond price	970 dollars	$1000 dollars	$1,150

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Answer rating: 100% (QA)

To answer this question we need to use the present value of an annuity formula which is PV Pmt x 1 1... View the full answer