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QUESTION 8 Suppose your company takes out a $3 million 5-year balloon loan from a bank at an interest rate of 2%. What will be
QUESTION 8 Suppose your company takes out a $3 million 5-year balloon loan from a bank at an interest rate of 2%. What will be the balloon payment at the end of the loan term? $3.65 million $3.31 million $3.83 million $3.48 million $4.01 million QUESTION 9 A firm issues zero-coupon bonds with a face value of $1,000 and time to maturity of 4 years. The bonds are currently trading at $640. What is the yield on this bond? a. 5.7% b. 6.696 c. 7.796 d. 9.396 e. 11.8%
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