1) Your company needs to borrow funds and has several options available to it, Loans A, B and C. The interest rates (APR) for these options are given below. What is the EAR of the loan option the company should choose?

Loan A (APR, compounding frequency) 5.95%, semi-annually // Loan B (APR, compounding frequency) 6.02%, monthly // Loan C (APR, compounding frequency) 5.95%, quarterly

2) Your company has an issue of $100 par value annual coupon bonds with 7 years remaining until maturity. The annual coupon rate is 3.45%, with a $96.60 current price of the bonds . What is the yield to maturity on the bonds?

3) Your company has an issue of $1,000 par value bonds that offer an 8% coupon rate paid semi-annually. The bonds have 5 years remaining until maturity. The market’s required return on these bonds is 3.15%. What is the amount of each coupon payment?