Commonly associated with personal financial decisions

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1. Say you get $100,000 mortgage loan with annual payments at 8 percent interest rate for 20 years. What is the annual payment?

2. Say you buy a new 10 year bond with a 4% annual coupon and a face value of $1,000. After four years you decide to sell in, meaning that there are six (6) years left to maturity. The interest is now 6.0 percent. What is the selling price of the bond (show your calculations)

3. What types of risks are commonly associated with personal financial decisions? How can these risks be evaluated and minimized to reduce personal and financial difficulties?

Reference no: EM131837549

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