J. DUOLIUL LOUILLOLILOOD 4. You are interested in buying a $1,000 par value bond with 30 years to maturity and a 10% coupon rate that is paid semiannually. How much should you be willing to pay for the bond if the required rate of return (discount rate) is 11%? 5. You want to buy a new car. You can make an initial payment of $2,500 and can afford monthly payments of at most $300. If the APR on auto loans is 6% and you finance the purchase over 60 months, what is the maximum price you can pay for the car? 6. Professor's Annuity Corp. offers a lifetime annuity to retiring professors. For a payment of $100,000 at age 65, the firm will pay the retiring professor $800 a month until death. If the professor's remaining life expectancy is 25 years. What is the effective annual rate (EAR)