FINANCE

A new issued twenty-year maturity bond with a coupon rate of 5% is selling at par ($1,000) If interest rate will rise from 5% to 4% after one year of purchasing the bond, what the bond's rate of return at the end of the first year of purchasing?

A. -13.06%

B. 10.51%

C. -15.50%

D. 18.13

2. With a 20% down payment requirement, a car value is $60,000 and a 5 year car loan is 4% per year, what is the monthly payment of the house?

D. 18.13