Most sensitive to changes in market interest rates

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Reference no: EM131881198

1. Which one of the following bonds is the most sensitive to changes in market interest rates?

5-year, zero coupon

5-year, 5 percent coupon 5-year,

8 percent coupon 10-year, zero coupon

10-year, 5 percent coupon

2. Monty purchased a new motorcycle for $28,000 and has a monthly payment of $522.00 over 60 months. Calculate the nominal interest rate for this transaction.

3. Y3K has sales of $6,239, total assets of $2,855, and debt-equity ratio of 1.30. If its return on equity is 15 percent, what is its net income? Please show your work.

Reference no: EM131881198

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