Suppose you borrow 10000 from your parents to buy a car


1. Suppose you borrow $10,000 from your parents to buy a car. You agree to pay $207.58 per month for 5 years. What is the annual percentage rate?

2. 25-year bond has a $1,000 face value, a 10% yield to maturity, and an 8% annual coupon rate, paid semi-annually. What is the market value of the bond?

3. An investment is expected to pay you $5000 per year for $10 years. What is this investment worth if you have an 8% required return?

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Financial Management: Suppose you borrow 10000 from your parents to buy a car
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