You are taking out a $50,000 loan to buy a new cool car. Your financial institution will lend you this money at 9% APR with monthly compounding. This loan should be amortized completely over 4 years of equal monthly payments, starting 1 month from now. What is the total interest that you will pay over the life of the loan?

$9,724.10

$3,122.38

$13,201.21

$6,364.07

$16,793.80

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You want to purchase a bond with the face value of $1,000 and a coupon of 6% paid semi-annually. Assume that this bond has a yield to maturity of 10% and a term to maturity of 8 years. What is the current price of the bond? Assume that the last coupon has just been paid.

$736.74

$750.76

$766.21

$724.03

$783.24