1. Consider a 30 year, FA graduated payment mortgage for $500,000 at 6%, with 5 payment increases of 20%. If fees are 2 points plus $8,000, what is the regulation-Z required APR?
2. A 20-year maturity, $1,000 face value bond has a 9% annual coupon, and a yield to maturity of 8%. What is the price of the bond?
3. A 30-year, $1,000 par value bond has a 7% annual coupon. The bond currently sells for $925. If the yield to maturity remains at its current rate, what will the price be 5 years from now?