1. Haswell Enterprises' bonds have a 10-year maturity, a 6.25% semiannual coupon, and a par value of $1,000. The going interest rate (rd) is 8.5%, based on semiannual compounding. What is the bond's price? Select the correct answer.
a. $842.86 b. $854.23 c. $846.65 d. $858.02 e. $850.44
2. A bank has agreed to lend you $53,000 for a home loan. The loan will be fully amortized over 39 years at 13.50%, with .44 points. The loan payments will be monthly. The closing cost is estimated to be $3,894 and you plan to refinance the mortgage in 8 years.
Calculate the book value at the end of the 8th year.
$57,222.99
$56,749.94
$56,613.10
$56,556.08
None of the answers are correct