Question1

(i) Mr Robert wants to spend $15000 each year for the next 12 years. Assuming a rate of interest of 6% per annum, calculate how much Mr Robert should have in his pocket now to be able to realise his wish.

(ii) Face value =1000 coupon rate=6% interest rate=7.5% a) Calculate the price of the above bond b) Calculate the price if it were a semi annual bond

(iii) Loan amount= $100,000 Rate of interest = 3% per annum Maturity=15 years Calculate the monthly repayment