7.01A REVIEW PROBLEMS: BOND TYPES AND CHARACTERISTICS C. SIMPLE INTEREST BONDS 1. A small business owner arranged a commercial bank loan by signing a promissory note for $20,000. The note earned simple interest at 9% per annum and matured in 60 days. Find a) the simple interest on the note, b) the maturity value, and c) the effective annual interest rate on the loan. (8) 2. An individual arranged a 4-month loan through a commercial loan by signing a promissory note for $7,500. The note earned simple interest at 12% per annum. Find a) the simple interest on the note, b) the maturity value, and c) the effective annual interest rate on the loan. (8) O AO