Annual interest rate compounded monthly

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Question 1: Julia Limited sells a 12-year semi-annual coupon bond that has an effective annual return of 4.6529%. What is the amount of each interest payment if the bond issue price is the same as the face value of the bond?

Question 2: Joshua Inc. wants to sell bonds to finance its business expansion. To accomplish this, they plan to sell 20-year, $6.2 million face value, zero-coupon bonds. The bonds will be priced based on a yield to maturity of 9.5%. How many bonds must they sell to raise the required capital? 

Question 3: How much interest is to be paid in the second year of a 6-year loan of $100,000 with payments occurring at the end of each month, and a 6% annual interest rate compounded monthly?

Reference no: EM131586271

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