26. Company X's bonds mature in 10.0 years and have a YTM of 3.60%. 10-year treasury bonds (T-bonds) have a YTM of 0.87%. What is the premium investors require for investing in Company X's bonds compared to T- bonds with the same number of years to maturity? a. 4.47% b. 2.73% c. 1.37% d. 1.50% e. 0.24% Mortgage Loan A woman has decided to take advantage of her employer's new work-from-home policy and buy a house in the Sierra foothills. Her offer of $329,000 for a house in Coarsegold has been accepted. She will put 20% down and has been approved for 30-year mortgage with monthly payments. Her first payment is due a month from now. 27. If the annual interest rate on her mortgage is 2.825%, how much will her monthly payments be? a. $1,084.98 b. $1,216.64 c. $1,127.48 d. $1,463.77 e. $1,047.00 28. Refer to the Mortgage Loan scenario above. How much interest will she pay in the first month? a. $556.88 b. $619.62 c. $645.25 d. $685.42 e. $762.50 29. Refer to the Mortgage Loan scenario above. What is the balance of the loan at the end of the first month? a. $261,199,00 b. $262,363.33 c. $262,757.93 d. $262,744.05 e. $262,734.64 30. Refer to the mortgage payment that you calculated above. The couple's additional housing expenses are shown below. How much will their total monthly expenses be, assuming the following? Expenses: Mortgage Payment - Maintenance costs of $300/month - Annual property taxes of 1.2% of purchase price Annual property insurance of $1,600 (Remember to divide the taxes and insurance amounts by 12 to get the monthly amounts) a. $1,889.82 b. $1,808.77 c. $2,212.09 d. $1,847.31 e. $2,036.38 31. Refer to the mortgage loan scenario above. What is the effective annual rate (EAR) that they will pay on their home mortgage, if their annual percentage rate (APR) is 2.825%? a. 2.862% b. 3.222% c. 3.170% d. 2.815% e. 3.750% 26. Company X's bonds mature in 10.0 years and have a YTM of 3.60%. 10-year treasury bonds (T-bonds) have a YTM of 0.87%. What is the premium investors require for investing in Company X's bonds compared to T- bonds with the same number of years to maturity? a. 4.47% b. 2.73% c. 1.37% d. 1.50% e. 0.24% Mortgage Loan A woman has decided to take advantage of her employer's new work-from-home policy and buy a house in the Sierra foothills. Her offer of $329,000 for a house in Coarsegold has been accepted. She will put 20% down and has been approved for 30-year mortgage with monthly payments. Her first payment is due a month from now. 27. If the annual interest rate on her mortgage is 2.825%, how much will her monthly payments be? a. $1,084.98 b. $1,216.64 c. $1,127.48 d. $1,463.77 e. $1,047.00 28. Refer to the Mortgage Loan scenario above. How much interest will she pay in the first month? a. $556.88 b. $619.62 c. $645.25 d. $685.42 e. $762.50 29. Refer to the Mortgage Loan scenario above. What is the balance of the loan at the end of the first month? a. $261,199,00 b. $262,363.33 c. $262,757.93 d. $262,744.05 e. $262,734.64 30. Refer to the mortgage payment that you calculated above. The couple's additional housing expenses are shown below. How much will their total monthly expenses be, assuming the following? Expenses: Mortgage Payment - Maintenance costs of $300/month - Annual property taxes of 1.2% of purchase price Annual property insurance of $1,600 (Remember to divide the taxes and insurance amounts by 12 to get the monthly amounts) a. $1,889.82 b. $1,808.77 c. $2,212.09 d. $1,847.31 e. $2,036.38 31. Refer to the mortgage loan scenario above. What is the effective annual rate (EAR) that they will pay on their home mortgage, if their annual percentage rate (APR) is 2.825%? a. 2.862% b. 3.222% c. 3.170% d. 2.815% e. 3.750%