Interest is at an effective annual rate of 63 what is the


1. A loan of amount $17013.63 is repaid in 15 annual payments beginning 1 year after the loan is made. The first 6 payments are $1200 each, and the final 9 payments are each $2400. Interest is at an effective annual rate of 6.3%. What is the amount of the principal repayment in the 6th payment?

2. The U.S. treasury has issued 10-year zero coupon bonds. Assuming semi-annual compounding, what will be the current market prices of these if the opportonity cost for similar bonds in the market are 11.20%.

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Financial Management: Interest is at an effective annual rate of 63 what is the
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