1. Ariana’s health insurance policy includes a deductible of $1,500 and a coinsurance provision requiring her to pay 20 percent of all bills. Her total bill is $8,800. What is Ariana’s total cost?
2. Contre-Jour Photography Studio just issued bonds with an annual coupon rate of 7% and maturity in ten years from now. What is the yield to maturity on these bonds if the price is $750 per bond and the face value is $1,000?
3. An annual coupon bond with the YTM of 12% and the face value of $1000 can be bought for$1000. What is the coupon rate on this bond?