1. The ERE bond has a 25-year maturity and a $1,000 par value. The interest rate is 10%. The coupon payments are paid semiannually. The bond is selling at the price of $850. What is the bond's (annual) coupon rate?
a. 6.27%
b. 8.36%
c. 6.60%
d. 6.95%
e. 7.22%
2. What is the (annual) interest rate for the following mortgage? Loan amount: $300,000.00 15 years to maturity Monthly payment: $3,500:
a. 11% b. 10.55% c. 12.56% d. 11.48%