1 a business will take out a 5-year loan of 200000 the, Ask an Expert

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1. A business will take out a 5-year loan of $200,000. The interest rate is 10% per year and the loan calls for a principal reduction of $40,000 per year. How much interest is paid in the 3rd year?

2. What is flight to quality? Provide one example of flight to quality in money markets or bond markets during the 2007-2009 financial crisis.

3. An insurance company is trying to sell you an investment policy that will pay you and your heirs $100,000 per year forever. If the required return on this investment is 6.5 percent, how much will you pay for the policy?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92798205

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