If you take out a mortgage loan of $310,000 over 25 years at a rate of 3.7% how much will you need to repay the bank each year if the loan should be paid in equal annual instalments? (6)

You are considering investing in a bond with 14 years to maturity and a coupon of 5%. If your personal cost of capital is 7%, what price would you be prepared to pay for the bond? (4)

Answer rating: 100% (QA)

The amount you would need to repay each year would be 12 7 41 67 You can calculate this by multiplyi... View the full answer