A home buyer buys a house for $1,248,000. She pays 20% cash and takes a fixed-rate mortgage for ten years at 7.25% APR. If she makes semi-monthly payments, which of the following is closest to each of her payment?

A. $5,854.65

B. $6,440.12

C. $4,683.72

D. $7,025.58

A university issues a bond with a face value of $5,000 and a coupon rate of5.89% that matures on 07/15/2018. The holder of such a bond receives coupon payments of

$147.25. How frequently are coupon payments made in this case?

A. monthly

B. annually

C. semiannually

D. quarterly