1. A 11?-year bond pays interest of $ 27.10 ?semiannually, has a face value of $ 1000 and is selling for $ 780.15 What are its annual coupon rate and yield to? maturity?
2. A $100,000 face value bond pays 4% interest annually for the next 30 years. The market rate is also 4%, if the bond is stripped what will lump sum and annuity sell for?
3. You have just taken out a 30-year, $120,000 mortgage on your new home. This mortgage is to be repaid in 360 equal end-of-month installments. If each of the monthly installments is $1,500, what is the effective annual interest rate on this mortgage?