What is the yield to maturity on the loan


Problem

1. What is the present value of $250 to be paid in 2 years if the interest rate is 15%?

2. If Pete borrows $100 from his sister and next year she wants $110 back from him, what is the yield to maturity on this loan? You decide to purchase a new home and need a $100,000 mortgage.

3. You take out a loan from the bank that has an interest rate of 7%. What is the yearly payment to the bank if you wish to pay oftc the loan in twenty years?

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Microeconomics: What is the yield to maturity on the loan
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