1. Under what circumstances might a junk bond seem like a reasonable investment?
2. A zero coupon bond that has 10 years until maturity (at which time $1,000 will be returned), if the bond is sold for $352, what is the yeild-to-maturity?
3. To purchase a house, you borrow $210,000 on a 30-year, fixed rate mortgage that carries an APR of 6.99%. Your monthly payments will be $___________.