Your installment in loan

You borrow BDT $20,000$ today at $12\%$ compound annual interest rate for five years.

According to the loan contract, you have to pay the same amount of money at the end

of the next six years i$.$e$.$ in five equal installments.

How much money will you have to pay in each installment?

Show the loan amortization table for the above borrowed loan.

Bond Valuation

You want to buy a bond that will pay a $12\%$ coupon every year. If this Bond has face

value $$1000$ and maturity $15$ years how much do you pay today if discount rate $=10\%$

For the same Bond above if the coupon rate $=8\%$ how much should you pay?

Why is the price of both the bonds different?

YTM

Calculate the Yield to Maturity of a Bond which matures in $5$ years and is currently

selling for $$1220$ with coupon rate $13\%$Expansion of Kate Winslets businessOn September $1,1998,$ Kate Winslet started a new business with the capital of $$10,000.$ Now, she wants to expand her business. For this purpose she needs to buy or lease one machine.Option to buy: You must decide whether or not to purchase new capital equipment. The cost of the machine is $$5,000.$ It will produce the following cash flows. The appropriate discount rate is $10$ percent.Year Cash Flow$1$ $ $700290031,00041,00051,00061,00071,25081,375$Option to lease: She is considering leasing equipment where she has to pay $$1,200$ for the next $10$ years each year. This lease amount will provide at the beginning of each year.Considering all the aspect, should she purchase the equipment or should go for the lease?