1. Does it make sense to pay down debt or not? Why? What is the impact of your credit rating on the business performance? How does debt impact your ROE ? Does ROE have an impact on the stock price?
2. Suppose the current one-year interest rate is 2.5% and the two-year interest rate is 3.5%. Calculate the expected one-year interest rate one year from now. (Enter percentages as decimals and round to 4 decimals;
3. Peter owes 30,000 on his student loans. The bank charges 5.5% APR (compounded monthly). If Peter pays $600 per month, how many months will it take him to pay off his loan? (Round up to a whole number)