1. if you are willing to Pay $42,595 today to recieve $4,217 per year forever then your required rare of return must be ___%. assume the first payment is recieved one year from today.

2. Derek borrows $335,930 to buy a house. he has a 30 year mortage rate of 4.15% afrer making 124 payments, how much does he owe on the mortage?

3.assume a par value of $1,000. caspian sea plans to issue a 27 year, annual pay bond that had a coupon rate of 7%. if the yield maturity for the bond is 7% what will be the price of the bond be?