5. How much could the same investment in the question above be sold for at the end of the fourth year if interest rate is 4% at that time?

6. Suppose you take out a 4-year loan of $60,000 at 6% APR to purchase a car. How much is the monthly payment?

7. What is the effective annual rate (EAR) of the loan in the question above?

8. Consider a 8-year, $1,000 par, 4.5% bond that pays semi-annual coupons. What is the price of this bond if interest rate is 5%?

9. Consider a 4-year zero-coupon bond with a par value of $1,000 selling for $888.487. What is the yield to maturity (YTM) of this bond?

10. Consider the same bond in the last question. What would the price of this bond a year later if interest rate at that time is 3.5%?