Makes equal quarterly installments

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1. Rau Inc. has 7.0 percent coupon bonds on the market with 9 years to maturity. The bonds make semi-annual payments and currently sell for 80 percent of par. What is the YTM? Please show detailed work.

2. Lulubelle offered to loan her money to buy a house. Auntie Lulu, as they call her, offered her a $95,000 loan at a 12% interest rate for 10 years. What will her payment be if she makes equal quarterly installments over the next ten years?

Reference no: EM131855921

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