1. You bought a16.0-year, 6.99% semi-annual coupon bond today and the current market rate of return is6.49%.The bond is callable in 4.0 years with a $92.00 call premium.What price did you pay for your bond?
2. A8.00%coupon,7.0 -year annual bond has a yield to maturity of5.45% .Assuming the par value is 1,000 and the YTM does not change over the next year, Compute the following:
3. Price of the bond today
4. Price of the bond in one year
5. Capital gains yield
6. Current Yield
7. Prepare the first row of a loan amortization schedule based on the following information.The loan amount is for$38,280.00with an annual interest rate of14.69% . The loan will be repaid over8.0years with monthly payments:
8. Loan payment
9. Interest portion
10. Principle portion
11. Loan balance after first monthly payment