Question: Please help answer ALL questions correctly with explanation. Questions 6-7 are based on the following information. Installment loans. You and your spouse want to purchase


Please help answer ALL questions correctly with explanation.
Questions 6-7 are based on the following information. Installment loans. You and your spouse want to purchase a new home that costs $400,000. Your plan is to pay 20 percent down in cash and finance the balance over 20 years at 4.25 percent. 6. What will be your monthly mortgage payment including principal and interest? a. $2,476.94 b. $2,000.00 c. $1,918.55 d. $1,981.55 7. What will be the remaining balance on the loan after 10 years? a. $241,799.83 b. $210,000.00 c. $193,439.87 d. $193,139.87 Questions 6-7 end. 8. TBUS 350 Investments is considering a project that will produce cash inflows of $10,000 at the end of Year 1, $25,000 in Year 2, $38,000 in Years 3 & 4. What is the present value of these cash inflows at a discount rate of 11.5 percent? a. $81,007.65 b. $81,076.54 c. $80,076.22 d. $82,444.02 Questions 9-14 are based on the following information. Bond valuation. On Jan. 1, 2016, your cousin, Laura, purchased one $1,000, 3-year semiannual bond with a coupon rate of 8%. The yield of the bond was 9% at the time. 9. How much did Laura pay for the bond? a. 974.21 b. 986.26 C. 1,000 d. 767.90 10. This bond was a a. discount bond b. premium bond c. par bond d. all of the above 11. How much did the firm actually borrow from Laura on Jan. 1, 2016? a. $1,000 b. $974.2:1 c. $986.26 d. $767.90 12. The coupon payment and interest in the first period were a. $40 and $40 b. $40 and $43.84 c. $80 and $80 d. $40 and $80 (Hint: interest-outstanding debt*interest rate) respectively. 13. Did the firm's coupon payment change over time? In other words, did the firm's coupon payment increase, decrease, or stay the same in the period from July 1 to Dec. 31, 2016 in comparison with the period from Jan. 1 to Jun. 30, 2016? a. Yes c. Cannot determine (Hint: distinguish interest payment from coupon payment. They are not the same thing.) 14. On July 1, 2017, Laura persuaded you to buy one bond. Suppose bond yield was unchanged. How much did you pay? a. 986.26 b. 990.83 C. 1000 d. 974.21 Questions 9-14 end
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