Question: question 1: A $30,000, three-year loan calls for a total of 47% interest. The loan calls for equal, monthly payments. What is EAR for this

question 1: A $30,000, three-year loan calls for a total of 47% interest. The loan calls for equal, monthly payments. What is EAR for this loan? question 2: A mortgage instrument pays $2.5 million at the end of each of the next two years. An investor has an alternative investment with the same amount of risk that will pay interest at 8% compounded monthly. Which of the following amounts is closest to what the investor should pay for the mortgage instrument? question 3: The Smart Bank wants to appear competitive based on quoted credit rates and thus offers a intial APR of 1.99% for six month which turns into a 17.99% annual percentage rate afterwards. What is the EAR of Smart Bank's offer? question 4: Xmass Co. plans to offer a 6%-coupon, semi-annual bond which matures in 10 years. Xmass 14-year, 5.75%-coupon, semi-annual bond currently sells for par. US Treasury yield curve is given as: 8-year, 3%; 10-year, 3.25%; 14-year, 4%. What is the current price of a $1,000 face value bond?

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