Q1. You are considering buying a car. You want to spend a maximum of $15,000 which includes your $2,000 down payment. You find the same car at two different dealerships. Determine which is the better deal.

Clunker Cars offer you annual payments of $3,060 for 5 years. Calculate the Rate.

Fast Cash Auto Sales wants to offer you financing for 5 years at 4%, calculate the payment.

What is the present value, and future value of both.

Q2. Calculate the following amounts for these bond scenarios:

A. Compute the bond price quoted at 97.

B. Compute the bond price quoted at 116.50

C. What is the annual coupon for 5.15% bond?

D. Calculate the price of a Zero Coupon bond that matures in 15 years with a market rate of 5.75%

E. Calculate the rate of a Zero Coupon bond that matures in 15 years with a market price of 48.