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Question 2 You decide to borrow $250,000 to build a new home. The bank charges an interest rate of 5% compounded monthly. If you pay

Question 2

You decide to borrow $250,000 to build a new home. The bank charges an interest rate of 5% compounded monthly. If you pay back the loan over 30 years, what will your monthly payments be (rounded to the nearest dollar)?

$1,687

$1,499

$1,834

$1,342

Question 9

Last year, you bought a bond with face value $1000, maturity 15 years, coupon rate of 5.5% per year payable semi-annually and yield to maturity of 7% per year. Currently the bond sells for $900. How much would be your total yield if you sell this bond today?

13.71%

10.78%.

(17.84%)

(15.79%)

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