What was the total amount she paid

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Problem 1: What is the issue price for a $500,000, 5 year, semi annual bond with stated rate at 4% when the market rate is 5%. What would you pay assuming you purchased $10,000 of this bond at the date of issue?

Problem 2: Sidney took a $200 cash advance by using cheques linked to her credit card account. The bank charges a 2-percent cash advance fee on the amount borrowed and offers no grace period on cash advances. Sidney paid the balance in full when the bill arrived. What was the cash advance fee? What was the interest for one month at an 18-percent APR? What was the total amount she paid? What if she had made the purchase with her credit card (assuming no over credit limit) and paid the bill in full promptly?

Reference no: EM132771886

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