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%)