1. Sqeekers Co. issued 13-year bonds a year ago at a coupon rate of 7.3 percent. The bonds make semiannual payments and have a par value of $1,000. If the YTM on these bonds is 5.6 percent, what is the current bond price?
2. 5 years ago, you deposited $5000. Today, the account balance is $6,000. If the account paid interest compounded annually, how much interest on interest was earned?
3. A small business owner visit a bank to ask for a loan. The owner states that he can repay a loan at $3300 per month for the next3 years and then $2300 per month for the next 2 years after that. If the bank is charging customers 10.50 percent APR, how much would it be willing to lend the business owner?