1. What are the two components of interest rate risk? What is the correlation of each to interest rate risk?
2. If you financed a $300k home over a 30 year period at a rate of 4%, how much would you have spent in total over the life of the loan
3. How much will you have in the bank six years from today? You will make deposits of $1,000 at the end of each year for the next four years. You can get a return of 3% on your deposits. (there is no typo in this question)?
a) $4183.63
b) $1125.51
c) $4438.41
d) $1194.05