Minimum acceptable rate of return

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Reference no: EM131906423

1. What is the maximum price you would pay for a bond if your Minimum Acceptable Rate of Return (MARR) is 7%, the bond face value is $25,000, and the coupon rate is 3%, paid semi-annually.

2. Eddie pays off a 20-year loan with level annual payments at the end of each year. The principal paid in the 10th payment is 333.18. The principal paid in the 15th payment is 489.56. Find the interest rate for his loan. Show all work.

Reference no: EM131906423

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