1. A store is offering a diamond ring for sale for 60 months at $100 per month. The retail price of the ring is $5,000. What is the interest rate on this offer?
4.99%
5.92%
7.64%
6.76%
2. What's the value of a 30-year, $1,000 par value, 6% coupon rate bond if the yield to maturity (YTM) is 7%? ______
$800
$950
$875.9
$1,100
3. What's the value of a 30-year, $1,000 par value, 6% coupon rate bond if the yield to maturity (YTM) increases to 8%? ______
$774.8
$834.2
$923.1
$1,000