1. Anwar purchased a new home and financed $322,000 using a 30-year fixed rate mortgage with a 4% interest rate. How much is his monthly payment?  

a. $1,537.28

b. $1,743.21

c. $1,121.57

d. none of these

2. Suzie purchased a new home and financed $375,000 using a 30-year fixed rate mortgage with a 3.6% interest rate. How much is her monthly payment?         

a. $1,537.28

b. $1,704.92

c. $1,121.57

d. none of these

3. What happens to the price of a 6% coupon rate bond when market rates of interest increase?         

a. the bond's market price will fall

b. the bond's market price will increase

c. the bond's price will not change

d. not enough information to tell