You feel you can afford a monthly payment of $900 on a home. The stated APR is currently 4.25%. If you can get a 30 year mortgage, what would be the value of your home loan (approximately)? a) $210,176 b) $161,919 c) $177,625 d) $182,949 e) $166,132 From what we discussed in class, which of the following investments pays simple interest? a) Corporate bonds** b) Annuities c) Preferred stock d) Common stock e) Nothing pays simple interest anymore. 1. A $1,000 par bond having a 5% coupon rate (interest is paid semiannually) with 40 years to maturity has a current price of $1382. What is the yield to maturity of the bond (approximately)? a) 5.00% b) 4.83% c) 2.49% d) 4.06% e) 3.28% 2. A Treasury bond maturing in 10 years has a quoted price of 97.225 and a coupon rate of 5%. What is the Treasury bond's current yield (approximately)? a) 5.00% b) 5.14% c) 5.36% d) 6.17% e) 6.38%