1.A corporate bond was issued a few years ago at face value of $1,000 with a YTM of 7% and quarterly paid coupons. Now with 12 years left until the maturity, the company has run into hard times and the yield to maturity has increased to 15%.

What is the bond price now?

2) Suppose the company defer the loss to future and will make good on the promised coupon payments. However, the deferred loss will finally drive the company out of business at the maturity of this bond. It's estimated that investors will lose all the face value with a probabilty of 30%, receive 50% of the face value with a probability of 40%, and 80% of the face value with 30% probability. What is the expected value investors will receive at maturity?

3) Given the calculated expected value received at maturity, how should investors adjust their estimate of the YTM?

4.A company has been making snowboards for many years. The monthly overhead is $32,600 and each snowboard costs $379 in materials and labor to make. If these items are sold for $433

How many snowboards must be sold to break even?

What is the profit in dollars if 107 snowboards are made and sold?

5.a trader bought 200 pens at $28 each and 10 gold pens at $4900 each, find the mean cost per pen.

6. Say you have $14,000 to invest into an investment account. You can either invest your money into an account with a 7% annual interest rate which is compounded quarterly, or an account with a 6.8% annual interest rate which is compounded monthly, which should you choose for a 15-year investment?

7.How much money would you have to invest in order to get $20,000 after 25 years in a 11% annual interest account that is compounded weekly?

8.Henry buys a large boat for the summer, however he cannot pay the full amount of $32,000 at once. He puts a down payment of $14,000 for the boat and receives a loan for the rest of the payment of the boat. The loan has an interest rate of 5.5% and is to be paid out over 4 years. What is Henry's monthly payment, and how much does he end up paying for the boat overall?

9.Julie spends $634.90 using her credit card during the duration of her monthly credit card statement (March 4th to April 4th). By May 4th she still hasn't paid off her credit card balance and has spent another $712.18. What is the credit card balance after the two months if her card has an interest rate of 21.99%?

10.The Jameses take out a mortgage on their $470,000 home. The mortgage has an interest rate of 4.6% and is amortized over 30 years by making monthly payments. How much will the James be paying each month on their home mortgage?