You are considering purchasing a new home. You will need to borrow

$290,000 to purchase the home. A mortgage company offers you a 15-year

fixed rate mortgage (180 months) at 6%APR (0.5% month). If you borrow the money from this mortgage company, your monthly mortgage payment will be closest to:

A.$2,447

B.$3,915

C.$3,426

D.$ 1 958

What is the coupon rate of a eight-year, $5,000 bond with semiannual coupons and a price of $4,693.30, if it has a yield to maturity of 6.7%?

A.

5.697%

B.

7.976%

C.

4.558%

D.

6.836%