KIC000158 - -Exam 2 PracticeProblems1.A bond with a 16 rate...

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Unformatted text preview: ---------------Exam 2 - PracticeProblems1.A bond with a 16 percentquarterlycoupon rate has a yield to maturityof 12percent.The bond has a par value of $1,000 and maturesin 10 years. What shouldbe the value of this bond?1/1'::3Pr'\1' ::'iDp.r"(lXX)1'l-:.4D?\{-:=.-1/1.3\,\52.You plan to purchasea $175,000house using a 15 year mortgageobtainedfromyour local bank. The mortgagerate offered to you is 7.75%. You make a downpaymentof 20% of the purchaseprice. Calculatethe monthlypaymentson thismortgage.\"J::;-~111)N-:.\'ID IIV-=-\~-ptJ\f= \I¥jt1.rl3.Calculatethe monthlypaymentson $150,000,30 year mortgage,if the rate is6.25%?\>-J~-\~,croN-:..~I ly-=-\.p,,!-{'PtJ'i'\=Q1'3, '5t4.You obtain a $275,000,15year fixed rate mortgage.The annual interest rate is5.5%.Inadditionto the principleand interestpaid you must pay $225 a monthinto an escrowaccount for insuranceand taxes.What is the total monthl?"!A.A-payment(tothenearestdollar)?'W:::.~?:1S,<m1'\.-:'\'7PI"{'"5i'{rr\f=-l'5211b-(ci:J»\'t'O',,;n 6 'l.1 ~n 6 'l....
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