You own a 4 year bond that has a face value of $12,000 and pays 8% å year in interest, once a year, at the end of the year. Two years after buying it, the interest rate increases to 10%. You do not want to wait 2 more years to get your principle of $12,000 back because you really need the money, so you decide to sell it on the open market. 1. How much can you sell it for? 2. Would it be a capital loss or gain and how much? How much is the capital gain or loss?

A parent wants to set aside enough money in an account to pay for a child’s college tuition. Tuition is $40,000 per year for four years. The first tuition bill will be due in one year. The account earns 2% per year. How much should be deposited in the account today   What is the value of a zero-coupon bond with face value of $100 and a maturity date in 20 years if the yield is 5% per year? The yield follows the bond equivalent yield c

7. After 5 years, you decide not to use the money for a car. Instead, you'll take $10,000 of it to buy a house. You find a home you love for $375,000. a. Assuming that you get an interest rate of 5.75%, plan on taking about a 30- year mortgage, and you will put a down payment of $8,000, what will your monthly payment be? (hint: find PMT, and don't forget to take out the down payment!) b. Yikes! That payment is way too much! You want to have a mortgage payment of $1200. Assuming that you get an interest rate of 5.75%, plan on taking about a 30-year mortgage, and a payment of $1200 each month, how big of a mortgage should you get? (hint: find PV. Do NOT take out a down payment.) c. After your findings in 5b, you aim for a $200,000 mortgage. Assuming you get an interest rate of 5.75%, plan on taking about a 30-year mortgage, and the mortgage is $200,000, how much will you pay over the life of the mortgage? (hint: find the PMT first) d. How much of that was interest if the loan was…

If you wanted to achieve a 7% return on this bond ($10,000 face value, payable in 10 years), with a $325 interest payment (A) every 6 months for 10 years, what would you pay for the bond today (P)? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.