1. Stillwater Hospitality Corporation bonds with a coupon rate of 5.125%, maturing in 2036 can be purchased now (March 1, 2021) for $925.75. The face value of each bond is $1000.00. The bonds are callable in three years (March 1, 2024 or later) at a call price of $1040. Assume annual compounding. Assume that coupon payments are made annually on March 1 of each year with the next payment to be received on March 1, 2022. Also, assume the bond matures on March 1, 2036.

(a) What is the yield to maturity (YTM) of this bond as of March 1, 2021 (today)? You must show how you arrived at your answer to get credit. For example, you can describe the steps you followed to arrive at your answer or values you entered in the calculator (values you entered for PV, N, I/Y, etc). Either underline or highlight your final answer.

(b) What is the yield to call (YTC) for this bond as of March 1, 2021? You must show how you arrived at your answer to get credit. For example, you can describe the steps you followed to arrive at your answer or values you entered in the calculator (values you entered for PV, N, I/Y, etc). Either underline or highlight your final answer.

(c) If you were to buy this bond today (March 1, 2021) at the current price of $925.75.75, which yield are you more likely to earn--the YTM or the YTC ? Explain

2. Tara is 30 years old today (she just had her birthday) and expects to retire on her 60^th birthday. Tara comes from a family known for their longevity and expects to live for 40 more years beyond retirement. She currently has saved $20,000 toward retirement. In addition to this amount, Tara expects to save $6,000 per year at the end of each of the next 15 years and does not plan on saving anything towards retirement after that. Assume an interest rate of 7.25 per year throughout the entire period of time.

(a) How much will Tara have in her Retirement Account at the end of the next 30 years? You must show how you arrived at your answer to get credit. For example, you can describe the steps you followed to arrive at your answer or values you entered in the calculator (values you entered for PV, N, I/Y, etc). Either underline or highlight your final answer.

(b) How much money can Tara withdraw at the beginning of each year during her retirement? (i.e, first withdrawal is when she turns 60 and the last one when she turns 99). You must show how you arrived at your answer to get credit. For example, you can describe the steps you followed to arrive at your answer or values you entered in the calculator (values you entered for PV, N, I/Y, etc). Either underline or highlight your final answer.

3. You decide to buy a small apartment building for $300,000. You pay $20,000 cash (down payment) and borrow the rest. The loan is for 20 years and requires equal monthly payments to include principal and interest of 4.5 percent per year.

(a) Calculate the amount of the monthly installment payments. You must show your work for credit. For example, you can describe the steps you followed to arrive at your answer or values you entered in the calculator (values you entered for PV, N, I/Y, etc). Either underline or highlight your final answer.

(b) What is the loan balance at the end of the first month? You must show your work for credit. For example, you can describe the steps you followed to arrive at your answer or values you entered in the calculator (values you entered for PV, N, I/Y, etc). Either underline or highlight your final answer.