1. Consider a 15-year, $135,000 mortgage with a rate of 5.75 percent. Four years into the mortgage, rates have fallen to 5 percent. What would be the monthly saving to a homeowner from refinancing the outstanding mortgage balance at the lower rate? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
2. A noncallable Treasury bond has a quoted yield of 4.78 percent. It has a 5.75 percent coupon and 13 years to maturity.
a. What is its dollar price assuming a $1,000 par value? (Round your answer to 2 decimal places. Omit the "$" sign in your response.)
Dollar price $ 1092.40
b. What is its quoted price?
Quoted price :