A loan of nominal amount £200000 in bonds of nominal amount £100 is to be repaid by 20 annual drawings, each of 100 bonds, the first drawing being 1 year after the issue date. Interest will be payable quarterly in arrears at the rate of 8% per annum. Redemption will be at par for the first 10 drawings and at 140% thereafter. An investor, who will be liable to income tax at the rate of 10%, purchases the entire loan on the issue date at a price to obtain a yield per annum of 5% net effective. What price does the investor pay for the entire loan?

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Linda deposits $60,000 into an account that pays simple interest at a rate of 6% per year. Bob deposits $60,000 into an account that also pays 6% interest per year. But it is compounded annually. Find the interest Linda and Bob earn during each of the first three years. Then decide who earns more interest for each year. Assume there are no withdrawals and no additional deposits. Year First Second Third Interest Linda earns (Simple interest) $3600 $3600 $3600 Interest Bob earns (Interest compounded annually) $3600 $3960 $4176 Who earns more interest? Linda earns more. Bob earns more. They earn the same amount. Linda earns more. Bob earns more. They earn the same amount. Linda earns more. Bob earns more. O They earn the same amount. X S

The AirJet Service Company´s bonds have four years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 8.75%. What is the market value of these bonds today if the yield to maturity is 6%