3. (4 points) The lender of a loan of 200000 receives interest payments at the end of each year for 25 years at an effective annual interest rate of 5.5% and in addition, will receive a lumpsum repayment of the principal along with the 25th interest payment. The borrower will pay the annual interest to the lender and accumulate the 200000 by making 25 level annual deposits at the end of each year to a sinking fund. The effective annual interest rate on the sinking fund is 2.4% for the rst nine years and 3.4% thereafter. Find the borrower's total amount paid over the course of the loan and the net interest paid by the borrower in the 15th total payment. 4. (4 points) A loan at an effective annual interest rate of 2' is amortized by level regular payments of 5720 every July 15, plus a nal smaller payment made at the time of the last regular payment. You are given the following: the interest paid in the July 15, 2002 payment is 3931.2, the interest paid in the July 15, 2009 payment is 3366.07 and the principal repaid in the July 15, 2015 payment is 2978.48. Find the date of the last payment and the last payment amount. 5. (4 points) Two bonds X and Y, redeemed at par, are offered for sale. Bond X, a 12year bond with face amount 1020, semiannual coupons at an effective interest rate of 1" per 6month period, is currently selling for 1012.43, where the effective yield rate is 3' per 6month period. It is also known that j is 2% larger than 7". Bond Y, a 20year bond with semiannual coupons at a nominal annual inter est rate of 6% convertible semiannually, is currently selling for 3046.11. The bond can be called at par value R (at the Option of the bond issuer) on any coupon date in the 15th to 20th years from the issue date. Find R such that the current price of bond Y yields a nominal annual rate of interest convertible semiannually of (a) at least 2 j. (b) at least 2(j + 0.01)