1 the ere bond has a 25-year maturity and a 1000 par value, Ask an Expert

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1. The ERE bond has a 25-year maturity and a $1,000 par value. The interest rate is 10%. The coupon payments are paid semiannually. The bond is selling at the price of $850. What is the bond's (annual) coupon rate?

a. 6.27%

b. 8.36%

c. 6.60%

d. 6.95%

e. 7.22%

2. What is the (annual) interest rate for the following mortgage? Loan amount: $300,000.00 15 years to maturity Monthly payment: $3,500:

a. 11% b. 10.55% c. 12.56% d. 11.48%

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92844128

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