please show all working so that i may know how you arrived at your answer

Please show all workings so that I can see how you arrived at your answer Question 1 You take out a 25year $170,000 mortgage loan with an APR of 9% and monthly payments. In 12 years you decide to sell your house and pay off the mortgage. What is the principal balance on the loan? (Round the monthly loan payment to 2 decimal places when computing the answer. Round your answer to 2 decimal places.) Principal balance on the loan $ Question 2 Home loans typically involve \"points,\" which are fees charged by the lender. Each point charged means that the borrower must pay 1% of the loan amount as a fee. For example, if the loan is for $150,000 and 4 points are charged, the loan repayment schedule is calculated on a $150,000 loan but the net amount the borrower receives is only $144,000. Assume the interest rate is .75% per month. What is the effective annual interest rate charged on such a loan, assuming loan repayment occurs over 300 months? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Use a financial calculator or Excel.) Effective annual interest rate % Question 3 A couple will retire in 40 years; they plan to spend about $23,000 a year in retirement, which should last about 20 years. They believe that they can earn 9% interest on retirement savings. a. If they make annual payments into a savings plan, how much will they need to save each year? Assume the first payment comes in 1 year. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Annual payment $ b. How would the answer to part (a) change if the couple also realize that in 15 years they will need to spend $53,000 on their child's college education? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Annual payment $ Question 4 A store will give you a 1.75% discount on the cost of your purchase if you pay cash today. Otherwise, you will be billed the full price with payment due in 1 month. What is the implicit borrowing rate being paid by customers who choose to defer payment for the month? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Effective annual rate % Question 5 a. How much will $100 grow to if invested at a continuously compounded interest rate of 7.75% for 9 years? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Future value $ b. What if it is invested for 7.75 years at 9%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Future value $ Question 6 In April 2013 a pound of apples cost $1.49, while oranges cost $1.13. Two years earlier the price of apples was only $1.28 a pound and that of oranges was $.99 a pound. a. What was the annual compound rate of growth in the price of apples? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Compound annual growth rate % per year b. What was the annual compound rate of growth in the price of oranges? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Compound annual growth rate % per year c. If the same rates of growth persist in the future, what will be the price of apples in 2030? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Price $ d. If the same rates of growth persist in the future, what will be the price of oranges in 2030? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Price $ Question 7 An engineer in 1950 was earning $6,300 a year. Today she earns $63,000 a year. However, on average, goods today cost 9.1 times what they did in 1950. What is her real income today in terms of constant 1950 dollars? (Round your answer to 2 decimal places.) Today's real income $ Question 8 A 30year Treasury bond is issued with face value of $1,000, paying interest of $54 per year. If market yields increase shortly after the Tbond is issued, what is the bond's coupon rate? (Enter your answer as a percent rounded to 1 decimal place.) Coupon rate % Question 9 A General Power bond with a face value of $1,000 carries a coupon rate of 9.8%, has 9 years until maturity, and sells at a yield to maturity of 8.8%. (Assume annual interest payments.) a. What interest payments do bondholders receive each year? Interest payments $ b. At what price does the bond sell? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Price $ c. What will happen to the bond price if the yield to maturity falls to 7.8%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Price will by $ Question 10 One bond has a coupon rate of 6.6%, another a coupon rate of 8.3%. Both bonds pay interest annually, have 15year maturities, and sell at a yield to maturity of 8.0%. a. If their yields to maturity next year are still 8.0%, what is the rate of return on each bond? (Do not round intermediate calculations. Enter your answers as a percent rounded to 1 decimal place.) Rate of return Bond 1 Bond 2 % % b. Does the highercoupon bond give a higher rate of return? Yes No Question 11 General Matter's outstanding bond issue has a coupon rate of 10.6%, and it sells at a yield to maturity of 8.70%. The firm wishes to issue additional bonds to the public at face value. What coupon rate must the new bonds offer in order to sell at face value? (Round your answer to 2 decimal places.) Coupon rate % Question 12 Consider three bonds with 5.0% coupon rates, all making annual coupon payments and all selling at a face value of $1,000. The shortterm bond has a maturity of 4 years, the intermediateterm bond has maturity 8 years, and the longterm bond has maturity 30 years. a. What will be the price of each bond if their yields increase to 6.0%? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Bond price 4 Years $ 8 Years $ 30 Years $ b. What will be the price of each bond if their yields decrease to 4.0%? (Do not round intermediate calculations. Round your answers to 2 decimal places.) 4 Years Bond price $ 8 Years $ 30 Years c. Are longterm bonds more or less affected than shortterm bonds by a rise in interest rates? More affected Less affected d. Would you expect longterm bonds to be more or less affected by a fall in interest rates? More affected Less affect $ Question 13 The following table shows the prices of a sample of Treasury strips. Each strip makes a single payment at maturity. Calculate the interest rate offered by each of these strips. Years to Maturity 1 2 3 4 Price, % 97.352% 93.851 90.044 85.980 a. What is the 1year interest rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Interest rate % b. What is the 4year rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Interest rate % c. Is the yield curve upwardsloping, downwardsloping, or flat? Upwardsloping Downwardsloping Flat d. Is this the usual shape of the yield curve? Yes No Question 14 a. Several years ago, Castles in the Sand Inc. issued bonds at face value of $1,000 at a yield to maturity of 6.4%. Now, with 6 years left until the maturity of the bonds, the company has run into hard times and the yield to maturity on the bonds has increased to 12%. What is the price of the bond now? (Assume semiannual coupon payments.) (Do not round intermediate calculations. Round your answer to 2 decimal places.) Bond price $ b. Suppose that investors believe that Castles can make good on the promised coupon payments but that the company will go bankrupt when the bond matures and the principal comes due. The expectation is that investors will receive only 80% of face value at maturity. If they buy the bond today, what yield to maturity do they expect to receive? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Yield to maturity % Please show all workings so that I can see how you arrived at your