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A) Jane has just purchased an apartment for $250,000. Her down payment is $70,000 and the remaining amount of the purchase will be financed using

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A) Jane has just purchased an apartment for $250,000. Her down payment is $70,000 and the remaining amount of the purchase will be financed using a 20-year mortgage. The bank quoted her a rate of 5.6% with semi-annual compounding and monthly payments. How much will her monthly payments be B) A cash-strapped young professional offers to buy your car with four, equal annual payments of $3,000, beginning two years from today. Assuming you're indifferent to cash versus credit, that you can invest at 10%, and that you want to receive $9,000 for the car, should you accept C) What is the rate of return for an investor who pays $1,054.47 for a three-year bond with a 7% coupon and sells the bond one year later for $1,037.192 Assume an annual coupon D) What would be the expected price of a stock when dividends are expected to grow at a 25% rate for three years, then grow at a constant rate of 5%, if a the stock's required return is 13% and next year's dividend will be $4.00 1

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