1. Your company wants to finance a new maintenance vehicle . The vehicle costs $25,000. You are offered an annual interest rate of 6% for a term of 5 years. What is your monthly payment?
2. The spot price of an investment asset that provides no income is $30 and the risk-free rate for all maturities (with continuous compounding) is 10%.
The asset provides an income of $2 at the end of the first year and at the end of the second year.
What is the three-year forward price?