Interest rate and yield to maturity


Interest rate and yield to maturity. You can use excel or financial calculator:
 
Question 1. What is the fair value of a 2-year $100,000 T-note with no coupon payment if the current market interest rate is 10%?

Question 2. If you obtain a 30 year mortgage loan of $100,000, find your monthly payment if annual interest rate is 3%, 5%, 10%.

Question 3. You want to buy a 10% coupon bond with a face value of 100000 that yields 6% to maturity of 5 years. What is the price of the bond you want to buy?

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Finance Basics: Interest rate and yield to maturity
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