What is the highest apr you can afford

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Reference no: EM131825065

1. You want to borrow $86,000 from your local bank to buy a new sailboat. You can afford to make monthly payments of $1,500, but no more. Assuming monthly compounding, what is the highest APR you can afford on a 72-month loan?

2. What is the value of a 10-year, 8% semiannual coupon bond, if rd = 12%? show work.

Reference no: EM131825065

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