1. You are paying an effective annual rate of 15.50 percent on your credit card. The interest is compounded monthly. What is the annual percentage rate on your account?
2. A 30 year, 10 percent semiannual coupon bond, with a par value of $1,000 sells for $1,374. What are the bonds yield to maturity? What would be the interest?
3. A $100,000 face value bond that matures in 10 years pays 6.5% interest semi-annually. What will it sell for if the market rate is: a. 5% semi-annually b. 7% semi-annually c. 11.25% semi-annually.