# ADMS3530-Final-F07-TypeA-PartII - Name _Section _ ID # _...

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Page 2 16 Numerical Questions 26. A loan of \$5,000 will be reimbursed with the following two payments: the first payment is due in one year while the second payment is due in five years. If the APR is 8%, semi-annual compounding, and the amount of the second payment is \$4,000, then what is the amount of the first payment? A) \$1,000.00 B) \$2,297.74 C) \$2,485.24 D) \$3,401.22 27. How much should you pay for a \$1,000 par value bond with a 10% coupon, semi- annual coupon payments, and two years to maturity, if the market interest rate is 12% in year 1 and 8% in year 2? A) \$965.35
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## This note was uploaded on 04/11/2011 for the course ADMS 3530 taught by Professor Unknown during the Spring '09 term at York University.

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ADMS3530-Final-F07-TypeA-PartII - Name _Section _ ID # _...

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