Reference no: EM132643172

Problem 1: Using the examples from the videos, which of these types of loans require that some principal be repaid prior to maturity (i.e., before the end of the loan period)? (check all that apply)

Option 1: Coupon bond

Option 2: Mortgage loan

Option 3: Bank loan

Option 4: Capital lease

Option 5: Zero-coupon bond

Problem 2: A company issues a 5-year, 4% coupon bond with a face value of $100,000. The effective market interest rate at the time of issuance is 2%. What are the proceeds from issuing the bond?

Option 1: $83,778

Option 2: $100,000

Option 3: $109,471

Option 4: $128,414

Option 5: $109,427