1. What would be the price of a bond with a $30,000 par value that will mature in 20 years that yields a 4.5% dividend (or coupon rate) paid yearly? The bonds are priced to yield 5%.

2. You have a balance of $9,000 on your credit card bill which charges 17.99% per year interest. You want to pay it off in 3 years with equal payments each month. How much must you pay every month to do this? How much total interest will you pay?

3. The person in the question 2 transfers the account to a card charging 5.99% interest a year. Now how much will the equal monthly payments be to retire the debt in 3 years? How much interest will be paid before the debt is retired? How much interest will be saved by changing cards?