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Cooper has a two-year agreement with Heritage Savings. Under this agreement, Cooper will receive $8,000 on April 1, 2013, $6,000 on Octo- ber 1, 2013,
Cooper has a two-year agreement with Heritage Savings. Under this agreement, Cooper will receive $8,000 on April 1, 2013, $6,000 on Octo- ber 1, 2013, $4,000 on April 1, 2014, and $2,000 on October 1, 2014, for a total of $20,000. He will make four semiannual payments to Heritage Savings for this loan, with the first payment due on September 30, 2013. Cooper will pay the interest due for each of the first three payments, then complete the repayment with the fourth. The interest rate applied will be the six-month spot rate at the beginning of each payment pe- riod. Given the spot rates experienced in the table below, list Cooper's payments for this loan. Date 4/1/2013 10/1/2013 4/1/2014 10/1/2014 6-month spot rate 3.04% 3.84% 3.37% 4.61% Cooper has a two-year agreement with Heritage Savings. Under this agreement, Cooper will receive $8,000 on April 1, 2013, $6,000 on Octo- ber 1, 2013, $4,000 on April 1, 2014, and $2,000 on October 1, 2014, for a total of $20,000. He will make four semiannual payments to Heritage Savings for this loan, with the first payment due on September 30, 2013. Cooper will pay the interest due for each of the first three payments, then complete the repayment with the fourth. The interest rate applied will be the six-month spot rate at the beginning of each payment pe- riod. Given the spot rates experienced in the table below, list Cooper's payments for this loan. Date 4/1/2013 10/1/2013 4/1/2014 10/1/2014 6-month spot rate 3.04% 3.84% 3.37% 4.61%
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