1.Suppose a five-year $1000 bond with annual coupons has a price of $900 and a yield to maturity of 6%. What is the Bonds coupon rate?

2.The yield to maturity of a $1000 bond with a 7% coupon rate, semiannual coupons, and two years to maturity is 7.6% APR, compounded semiannually, what must its price be?

3.Suppose Capital One is advertising a 60-month, 5.99% APR motorcycle loan. If you need to borrow $8000 to purchase your dream Harley-Davidson, what will your monthly payment be?

4.You have been offered a job with an unusual bonus structure. As long as you stay with the firm, you will get an extra $70,000 every seven years, starting seven years from now. What is the PV of this incentive if you plan to work for the company for a total of 42 years and the interest rate is 6% (EAR)?

5.You figure that the total cost of college will be $100,000 per year 18 years from today. If your discount rate is 8% compounded annually, what is the present value today of four ( 4) years of college costs starting 18 years from today?

6.You have a loan outstanding; it requires making three annual payments of $1000 each at the end of the next three years. Your bank has offered to allow you to skip making the next two payments in lieu of making one large payment at the end of the loan's term in three years. If the interest rate on the loan is 5%, what final payment will the bank require you to make so that it is indifferent to the two forms of payment?

7.Your grandfather put some money in an account for you on the day you were born. You are now 18 years old and are allowed to withdraw the money for the first time. The account currently has $3996 in it and pays an 8% interest rate.

a.How much money would be in the account if you left the money there until your twenty-fifth birthday?

b.What if you left the money until your sixty-fifth birthday?

c.How much money did your grandfather originally put in the account?