Question
1)You need a $10,000 loan from your bank and are considering different lending arrangements. If your bank charges an APR of 12% with weekly compounding
1)You need a $10,000 loan from your bank and are considering different lending arrangements.
If your bank charges an APR of 12% with weekly compounding and you make monthly payments of $400 beginning one month from today, how many months will it take you to pay off your loan?
The answer for this question is t= 28.93 months, I need to know the steps in order to get this answer.
2)Today, you purchased a bond for $771.90. The bond pays a 5% coupon annually and has thirteen years to maturity. If five years from now the yield to maturity on your bond is 6% and you decide to sell it at the end of year five, what will be the holding period yield (HPY) on your investment?
The answer is hpy= 10% I need to know how to get this answer in steps and how to find this answer using a financial calculator. (description please)
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