1. You have $60,000 to put as a down payment on a new house that costs $900,000 and you have been quoted the folloeijg terms: 5% Annual Percentage Rate(APR) for 30 years. Over the life of the loan what would your total interest interest expense be?

2. Your firm has net income of $525 on total sales of $1260. Costs are $700 and depreciation is $240. The tax rate is 30 percent. The firm does not have interest expenses. What is the operating cash flow?

3. BBB Inc bonds have a par value of $1000, a 2" year maturity and an annual coupon rate of 8.0% with annual coupon payments. The bonds are currently selling for $942. The bonds may be called in 6 years for 112.0% of par ($1120). What is the yield to call?