Question
a) Suppose you borrowed $15,000 at a rate of 11.1% and must repay it in 10 equal installments at the end of each of the
a) Suppose you borrowed $15,000 at a rate of 11.1% and must repay it in 10 equal installments at the end of each of the next 10 years. How much interest would you have to pay in the first year?
| a. | $1,714.95 | |
| b. | $1,852.84 | |
| c. | $1,665.00 | |
| d. | $1,248.75 | |
| e. | $1,481.85 |
b) A 25-year, $1,000 par value bond has an 8.5% annual payment coupon. The bond currently sells for $925. If the yield to maturity remains at its current rate, what will the price be 10 years from now?
| a. | $950.49 | |
| b. | $930.11 | |
| c. | $865.00 | |
| d. | $850.49 | |
| e. | $1021.11 |
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International Financial Reporting Standards An Introduction
Authors: Belverd E. Needles, Marian Powers
3rd Edition
1133187943, 978-1133187943
