Suppose you borrow 15000 and then repay the loan by making, Financial Management

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Suppose you borrow 15000 and then repay the loan by making

1. Suppose you borrow $15,000 and then repay the loan by making 12 monthly payments of $1,297.92 each. What rate will you be quoted on the loan? What is the effective annual rate you are paying?

2. A 15-year corporate bond pays $40 interest every six months. What is the bond's price if the bond's promised ytm is 5.5%?

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Financial Management: Suppose you borrow 15000 and then repay the loan by making

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Financial Management: Suppose you borrow 15000 and then repay the loan by making

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