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?