Total principal and interest payments

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Reference no: EM13157903

A recently issued noncallable bonds that mature in 10 years. They have a par value of $1,000 and an annual coupon of 5.5%. If the current market interest rate is 7.0%, at what price should the bonds sell?

Please explain each answer in excel format:

1. If you deposit $5,000 in a bank account that pays 10% interest annually, how much will be in your account after 3 years?

2. What is the present value of a security that will pay $10,000 in 10 years if securities of equal risk pay 7% annually?

3. What is the future value of a 7%, 5-year ordinary annuity that pays $300 each year?

4. What is the present value of a $300 per year 6%, 5-year ordinary annuity?

5. Prepare an amortization schedule for the following loan, for the first three months of the loan: $20,000 car loan, payments are $444.89 for 5 years, payable monthly at 12%.

What are the total principal and interest payments for the 5 year loan?

Reference no: EM13157903

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