1. Suppose that you just purchased a Baa rated $1000 annual coupon bond with a 5.3 % coupon rate and a 4 -year maturity. If the yield to maturity on the bond is 6.495 %, how much did you pay?
2. Suppose that you purchased a Baa rated $1000 annual coupon bond with a 7.8 % coupon rate and a 7-year maturity at par value. If you sold the bond two years later, and the yield on comparable debt is 5.868 %, what would your capital gain(+)/loss(-) be? (Enter dollars and cents.)
3. Suppose that you purchased a Baa rated $1000 annual coupon bond with a 5.6 % coupon rate and a 4-year maturity at 8 % above par value. What would the current yield (in %) be at the time of purchase (4 digits)?
4. Suppose that you purchase a Baa rated $1000 semi-annual coupon bond with a 6.2% coupon rate and a 2-year maturity yielding 4.486%, what would the price be?
5. Suppose that you have the option to lease a new car, which you otherwise intend to purchase for $21,000. The lease terms: $3000 down and payments of $298 per month for 48 months, at the beginning of each month. Upon termination, you can purchase the car for an addition payment of $7000 at lease expiration. If your financing rate is 5.4% APR, and you discount the lease-purchase option using that same rate, how much will pay to buy car (in present-value terms) using the lease-purchase option?
6. Suppose that you have the option to lease a new car, which you can otherwise purchase for $21,000. The lease terms: $3000 down and payments of $314 per month for 48 months, at the beginning of each month. Upon termination, you can purchase the car for an additional payment of $7000 at lease expiration. If your financing rate is 8.1% APR, and you intend to finance the purchase of the car, how much do you gain (+) or lose (-) by buying the car instead of using the lease-purchase option?
7. Suppose that you can purchase a car for $21,000 cash, but the dealer offers to sell you the car for 2000 down, and $440/mo, paid at the end of the month for 48 months. Based on a rate of 4.8% APR, how much do you gain (+) or lose (-) by paying cash for the car instead of accepting his financing terms?
8. Suppose that you wish to buy a new home that will cost you $483,929. You must put $96,282 down, and will finance the rest at 2.89% APR, making monthly payments for 30 years at the end of each month. How much will your monthly payments be?
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