Calculate the loan monthly installments and apr of the loan

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Q1. Consider the loan of $250,000 with the nominal annual interest rate of 5% compounded quarterly that has to be paid off in 10 years. The loan cost includes 1.25 points plus originating fee of S750. Calculate the loan monthly installments and APR of the loan.

Q2. What is the rate of return on the following investment?

Assume you pay 750 dollars for a bond that was issued three years ago (assume you buy it from the first owner after three years). The bond has the face value of $1000 and pays an income of S50 each year (bond coupon). The bond has maturity date of 10 years (from the time that it is issued).

Reference no: EM132178321

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