Note: Keep 8 decimal You have secured a places for your computations loan business fve-year loan for $200,000 to purchase an auto repair from your friend who is retiring. The interest rate is 8% per year payments.y, and the loan agreement calls for equal monthly a) What will your monthly loan payments be? bj Business has ben very stmonpand s you approach the bank to pay the loan off in full at the end of the second year. How mu ar. ) For the last tueo rearf tho s coaond yenr investing excess funds at the end of every month into an investment account earning 10% compounded monthly. You have just enough funds to pay off the outstanding balance in part b) in full. How much did you invest each month? d) How much did you save in interest costs by paying the loan off early? Problem 6 (14 marks) On July 20th, 1993, Disney was the first company since the 1950s that sold a 100-year bond (aptly named Sleeping Beauty bond) to investors. Only one day later Coca-Cola also issued a 100-year bond paying semi- annual coupons with a coupon rate of 7.46%. The market rate of interest for bonds in the same risk category at the time was 7.8%. (a) What was the price of the Coca-Cola bond when it was first issued? (b) Does the bond sell at a premium or at a discount? (c) What was the current yield of the Coca-Cola bond at issuance? (d) Suppose you bought the bond at issuance for the price in part a) and held til today exactly 24 years later. The current price of the bond in the market is quoted at 120.37. What would be the approximate holdin period return of the bond since issuance? Calculate the return annual percentage rate as well as an effective annual ratel