1. You purchase a $325,000 Town home and you pay 25% down. You obtain a 30 year fixed-rate mortgage with an annual interest rate of 5.75%. After 5 years you refinance the mortgage for 25 years at a 5.1% annual interest rate. After you refinance, what is the new monthly payment (to the nearest dollar)?
2. A.T. bond with a $1000 par is quoted at a bid of 105.7 and an ask of 105.9. What will you receive if you sell the bond?