1. What is the difference in basis points between the discount rate of return (DR) and the investment rate of return (IR) on a $30 million commercial paper note purchased at a price of $28.5 million and scheduled to mature in 60 days? Make sure to show your work.
2. You take out a 30-year $450,000 mortgage loan with an APR of 775 percent and monthly payments. In 16 years, you decide to sell your house and payoff the mortgage. What is your monthly payment? What is the principal balance on the loan? What is your total payment? What is your principal payment? What is your interest payment? Make sure to show your work.