Question: John Cena borrows 5 0 0 , 0 0 0 from Ashley Tisdale. Cena will repay Tisdale with 7 2 end of month payments. The

John Cena borrows 500,000 from Ashley Tisdale. Cena will repay Tisdale with 72 end of month payments. The nominal interest rate is 7.2% convertible monthly. Cena's first 24 payments are x, the second 24 payments are 2x and the third 24 payments are 3x. Just after the 48th payment has been made, Tisdale sells the remaining payments to Miley Cyrus. The price Cyrus pays is based on a nominal interest rate of 8.4% convertible monthly. Calculate the nominal yield rate for Tisdale convertible monthly.
 John Cena borrows 500,000 from Ashley Tisdale. Cena will repay Tisdale

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