How long will it take you to pay off the loan

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1. You just received a credit offer in an email. The company is offering you $4,000 at 12 percent interest. The monthly payment is only $200. If you accept this offer, how long will it take you to pay off the loan?

2. Anushruti P. & Peter J. R. Company has an issue of commercial paper in the UK with a face value of £2,500,000 and a maturity of 6 months. A & P Company received net proceeds of £2,350,000 when it sold the paper. What is the effective annual rate of the paper to A & P? (Show Calculations)

3. One year ago, you purchased a 5 percent annual coupon, $1,000 par, 6-year bond for a clean price of $1,075. The bond now has 5 years remaining until maturity. Today, the yield to maturity on this bond is 6 percent. How does today's price of this bond compare to your purchase price?

Reference no: EM132006519

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