1. You plan to borrow $250,000 at a 7.5% interest rate. The terms require you to amortize the loan over 30 years making monthly payments. How much total interest you will pay during the first five years of the loan life?
2. Star's Inc. Has sales of $5,943229 and account receivables of $1,320,550. What is the company's receivable turnover rate? what is the firm's day sales outstanding (DSO)?
3. We have a 10%, 25 year bond, which sells for $1100. If the firm has the right to call it back after 16 years at par plus half a years coupon. Compute the YTM and the YTC. Which will the investor attain? show written equations please.