1) You make a decision to buy building for $30,000 by paying $5,000 down and suppose a mortgage of= $25,000. Bank offers you 15-year mortgage requiring annual end-of-year payments of= $3,188 each. Bank also needs you to pay 3% loan origination fee, which will decrease the efficient amount bank lends to you. Calculate annual percentage rate of interest on this loan.
2) Bonds are sometimes not understood rightly by potential investors. To make good investment decision, you require knowing how bonds work. The method you explained premium and discount prices of bonds are right. Bonds can also be sold at par value, but that depends on market. In these present economic conditions, bonds will sell at premium.
Would you agree to this statement? Explain why or Why not?