Prepare an amortization schedule for a three-year loan

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1. Prepare an amortization schedule for a three-year loan of 54,000. The interest rate is 8 percent per year, and the loan calls for equal annual payments. How much interest is paid in the third year?

2. Lycan, Inc. has 7 percent coupon bonds on the market that have 9 years left to maturity. The bonds make annual payments and have a par value of $1000. If the YTM on these bonds is 8.4 percent, what is the current bond price?

3. If Treasury bills are currently paying 4.5 percent and the inflation rate is 1.6 percent, what is the approximate real rate of interest?

Reference no: EM131455645

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