1. What is the value of a bond that has a par value of $1,000, a coupon rate of 7.58 percent (paid annually), and that matures in 14 years? Assume a required rate of return on this bond is 10.90 percent.
2. You purchased a car using some cash and borrowing $13,000 (the present value for 58 months at 7% per year. Calculate the monthly payment annuity). Then assume you have made ten payments. What is the balance (present value) of your loan?