1. A commercial real estate developer plans to borrow money to finance an upscale mall in an exclusive area of the city. The developer plans to get a loan that will be repaid with uniform payments of $400,000 beginning in year 2 and ending in year 16. How much will a bank be willing to loan at an interest rate of 12% per year?
2. How much will Kingston Technologies have to pay each year in 11 equal payments, starting 2 years from now, to repay a $900,000 loan. The interest rate is 14% per year?
3. Explain the three main theories that attempt to explain the nature of the yield.
4. What is the main contributory factors in financial crisis.