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We take a 20-year loan of $10000 from a bank. The nominal annual interest rate is 3% w/interest credited calculated monthly just before the monthly

  1. We take a 20-year loan of $10000 from a bank. The nominal annual interest rate is 3% w/interest credited calculated monthly just before the monthly payment are due. (a) Find the amount payments. (b) find the outstanding balance right at the end 10th yr. using the prospective method. (c) find the same outstanding balance using the retrospective method.

  1. What is the price of a 20 years 10000 semi-annual bond redeemable at per with the nominal annual coupon rate of 6% and the nominal annual interest rate of 8% ?

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