1. Suppose that Jason writes a $120 check to borrow $100 for 2-week pay day loan, what is the APR on the loan? What is the EAR on the Loan?
2. Beam Inc. bonds are trading today for a price of ?$917.08. The bond pays annual coupons with a coupon rate of 8.5?% and the next coupon is due in one year. The bond has a yield to maturity of 9.42?%. How many years are there until the bond? matures?
3. Springfield Nuclear Energy Inc. bonds are currently trading at ?$1,239.02. The bonds have a face value of ?$1,000?, a coupon rate of 10.5?% with coupons paid? annually, and they mature in 15 years. What is the yield to maturity of the? bonds?