Consider a $4-$year auto loan of $$100,000$ at $6\%$APR. This loan requires $4$ equal annual

payments, with the first payment due at the end of the first year.

a$.$ Show that the annual payment is $$28,859\mathrm{.}15.$

Note: You need to show all the steps how the answer is obtained.

b$.$ Complete the table below.

Consider the same auto loan in the question above but requires monthly payments.

a$.$ How much is the monthly payment?

b$.$ What is the effective annual rate $($EAR$)$ of this loan?

Consider a $8-$year, $$1,000$ par, $4\mathrm{.}5\%$ bond that pays semi$-$annual coupons. What is

the price of this bond if it has a yield to maturity $($YTM$)$ of $5\%?$

Consider a $6-$year zero$-$coupon bond with a par value of $$1,000$ selling for $$813\mathrm{.}501.$

What is the yield to maturity $($YTM$)$ of this bond?

Consider the same bond in the last question. What would the price of this bond be

one year later if interest rate at that time is $3\mathrm{.}75\%?$