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Assume that you decides to buy a house for $187,600. You will pay 20% down payment...

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Finance

Assume that you decides to buy a housefor $187,600. You will pay 20% down payment by your saving and fundthe remaining amount (i.e., 80% of the house price) using amortgage loan. The bank offers 30-year mortgage with monthlyinterest 0.5313%. You will pay backthe loan in equal amount at theend of each month for the next 30 years. (In other words, just likereal-world practice, you will pay back the loan using equal-amountmonthly payments).  How much is your monthly payment forthis mortgage loan?   

             A)863

         B) 936

             C)1,021

         D) 1,121

         E) 1,211

Kodak has a bond with 10 year untilmaturity, a coupon rate of 12%, and selling for $1,200. This bondpays coupon payment annually. What is the yield to maturity of thisbond?     

         A)           6.1%.

             B)7.1%.

             C)       8.9%.

             D)       9.9%.  

         E)           12%.

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