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Problem 1 price a discount bond per 1000 of face value with

Problem 1: Price a discount bond per $1000 of face value with a maturity of one year if the interest rate is 7%

Problem 2: Suppose the interest rate on a fixed-rate, 30-year mortgage is 6.5%. Lex can afford to make payments of $1100/month. What is maximum mortgage Lex can afford?

Problem 3: While Lex ponders buying a house, the interest rate falls to 5.5%. Lex can still only afford to make payments of $1100/month. What is maximum mortgage Lex can afford now?

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Business Management: Problem 1 price a discount bond per 1000 of face value with

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Business Management: Problem 1 price a discount bond per 1000 of face value with

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