1 according to a website of an installment lender borrowers


1. According to a website of an installment lender, borrowers in California could be eligible to receive a loan of $2600 and pay back by making fixed monthly payments of $767.96 for nine months. Calculate the yield to maturity of this loan. Answer in percent and round to two decimal places. Do not enter a % sign.

2. Spike buys a car from John's Auto Mart for $5000. He finances the car from the dealer and agrees to make payments of $180 per month for 3 years. What is the yield to maturity on this fixed payment loan?

3. Suppose Acme issues a semi-annual coupon bond with face value of $1000, coupon rate of 5%, and maturity of 30 years. If the price of this bond is $1100, find the yield to maturity.

4. Suppose Acme issues a semi-annual coupon bond with face value of $1000, coupon rate of 3%, and maturity of 6 years. If the price of this bond is $980, find the yield to maturity.

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Business Economics: 1 according to a website of an installment lender borrowers
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