BAWA - T4 Current Material Q. (11-15)

Question 11:

Jim Frank wants to borrow exactly$5000 for 270 days so he can update his home office. How much less interest is paid with a13% simple interest note compared to a13% simple discountnote? Round to the nearest hundredth of a percent.

Question 12:

Use the average daily balance for the following credit card account to find the finance charge if interest is

1.91% per month on the average daily balance. Assume one month between billing dates. Round to the nearest cent.

Previous balance

$206.11

October 12

Billing date

October 20

Payment$75.00

October 21

Purchase$41.18

October 27

Return$27.78

November 5

Purchase$32.89

Question 13:

Use the table below to find the following information for Company A bonds maturing in

2035.

Close price per bond

Company ticker- Company A

Coupon - 2.830

Maturity - Jul 19, 2035

Last price - 146.828

Last Yield - 4.830

EST $ VOL (000's) - 243,289

The close price per bond isjQuery22405716402356199877_1620774959565 (Type integer or decimal)

Question 14:

Use the table below to find the following information for Company A bonds maturing in

2038.

Annual interest

Company ticker - Company A

Coupon - 2.970

Maturity - Aug, 19, 2038

Last price - 170.178

Last yield - 4.680

EST $ VOL (000's) - 244,670

The annual interest is $?? (type integer or decimal)

Question 15:

Compute the present value of a bond using the financial calculator

Assume you are trying to estimate the price you will pay for a bond. The face value is$1000, the coupon rate of interest paid annually is8%, the bonds mature in 20 years and are currently priced to yield7.25%. Compute the present value of the bonds today(hint you must compute the annual interest payment using the coupon rate and the yield rate will be yourI/Y)

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