answer the 5 part question to 1 1A. Prepare the first row of a loan...
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answer the 5 part question to 1
1A. Prepare the first row of a loan amortization schedule based on the following information. The loan amount is for $18,777.00 with an annual interest rate of 18.03%. The loan will be repaid over 4.0 years with monthly payments
Loan payment:
Interest portion:
Principle portion:
Loan balance after first monthly payment:
1B. A 6.37% coupon, 6.0 -year annual bond has a yield to maturity of 3.22%. Assuming the par value is 1,000 and the YTM does not change over the next year, Compute the following:
Price of the bond today:
Price of the bond in one year:
Capital gains yield (please answer as a percentage with 2 decimal places):
Current Yield (please answer as a percentage with 2 decimal places):
1C. Suppose you invest $14,872.00 today in an account that earns 3.58% interest annually. How much money will be in your account 2.0 years from today?
1D. What is the value today of single payment of $56,193.00, 12.0 years from today if the value is discounted at a rate of 24.72%?
1E. How many years would it take an investment of $522.00 to grow to $41,126.00 at an annual rate of return of 23.4%?
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