1. Consider a $100,000 mortgage loan with an annual interest rate of 7% for 30 years (fully amortized). What is the monthly payment? What will be the balance at the end of 4 years and 15 years?
2. Ngata Corp. issued 18-year bonds 2 years ago at a coupon rate of 10.1 percent. The bonds make semiannual payments. If these bonds currently sell for 100 percent of par value, the YTM is percent.
3. Ashes Divide Corporation has bonds on the market with 13.5 years to maturity, a YTM of 11.4 percent, and a current price of $972.77. The bonds make semiannual payments. The coupon rate on these bonds must be.