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1. Using this given information: Equity Market Premium = 12.8%, Expected return on market = 10.5%, and Beta = 1.60 . Please find the risk free rate

2. What will be your monthly payment on a $400,000 15 and a 30 yr mortgage if the rate is 4.15% for people with good credit and 13.5% for people with bad credit 4 calculations? Also, how much interest will you pay over the life of the 4 loans you just calculated? (The mortgage is $400,000 you may have to adjust a bank rate default of 20% down) Why would someone finance a house with a 10 year interest only loan (site 3 reasons)?

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