1. What is the maximum house price you can afford if your gross monthly income is $6000, you have $1500 in monthly long-term obligations, and you can make a down payment of 20% of the home price given the following lender’s loan parameters?
Interest Rate: 7.5%
Loan type: 15 years
Housing Expense Ratio: 25%
Total Debt Ratio: 35%
$80,905.07
$127,199.05
$154,385.47
$161,810.14
2. The higher the coupon rate of a bond:
a. the hight it face value
b. the lower its current price
c. the longer its maturity
d. the lower its coupon payments
e. the higher its coupoon payments
3.