Additional Practice Problems Using the Tables_1

Additional Practice Problems Using the Tables_1 - years The...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Additional Practice Problems Using the Tables 1. What price would you pay for the following bond? (20,.06) a. 10,000 face value, coupon rate of 16%, interest paid semiannually. The bond matures in ten years and the yield to maturity is 12% 2. What price would you pay for a zero coupon bond that matures in 6 years; 1,000 face value; 8% yield to maturity. 3. You currently have a 20 year mortgage and have made payments for the last 5
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: years. The interest rate on the mortgage is 8% and interest payments are made annually. Your current annual payment is 12,325 per year. You want to refinance this mortgage as you can now get a rate of 6%. What is the amount that you are going to refinance? Pv of annuity...
View Full Document

This note was uploaded on 02/24/2010 for the course GB 112 taught by Professor Osterheld during the Spring '10 term at Bentley.

Ask a homework question - tutors are online