1. United Air has a 7.5% coupon 30 year bond (par value = 1,000). Assume that coupon payments are semi-annual and that the current price is $1040.60. What is the yield-to-maturity of this bond?
2. Compute the present value of a $2,800 deposit in year 3 and another $2,300 deposit at the end of year 5 if interest rates are 8 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.)
3. To borrow $950, you are offered an add on interest loan at 9.5 percent with 12 monthly payments. Compute the 12 equal payments. (Round your answer to 2 decimal places.) Equal payments $ Compute the EAR of the loan. (Do not round intermediate calculations and round your answer to 2 decimal places.) EAR %