1. What is the yield to maturity if a bond has a price of $10000 and pays $350 of interest annually forever?
2. Suppose you have $50,000 annual disposable income and would like to spend 30% of the income on the mortgage payment.
3. Find the highest affordable house price if a 30-year mortgage rate is 6.0%.
4. Due to low interest policy, as of January 10 of 2015, the 30 year mortgage rate was dropped to 3.0%. Find the highest affordable house price.