1. You are considering two ways of financing a spring break vacation. You could put it on your credit? card, at 15% APR, compounded? monthly, or borrow the money from your? parents, who want an interest payment of 6% every six months. Which is the lower? rate?
2. Winston Enterprises has a 15-year bond issue outstanding that pays an 8% coupon. The bond is currently priced at $1,094.60 and has a par value of $1,000. Interest is paid semiannually. What is the yield to maturity?
a) 5.20% b) 6.97% c) 8.67% d) 10.16% e) 10.40%