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Author Question: Interest on a twelve-month installment loan is to be calculated using the add-on method. If the ... (Read 88 times)

plus1

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Interest on a twelve-month installment loan is to be calculated using the add-on method. If the purchased to be financed is 1,000 and the add-on rate is 6, then your monthly payment is about
 
  A)
 
  76.67.
  B)
 
  86.07.
  C)
 
  88.33.
  D)
 
  88.65.

Question 2

You are considering an investment in a U.S. Treasury bond but you are not sure what rate of
  interest it should pay.
 
  Assume that the real risk-free rate of interest is 1.0; inflation is expected to
  be 1.5; the maturity risk premium is 2.5; and, the default risk premium for AAA rated corporate
  bonds is 3.5. What rate of interest should the U.S. Treasury bond pay?
  A) 5.0 B) 2.5 C) 8.5 D) 6.0


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miss.ashley

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plus1

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Reply 2 on: Jul 11, 2018
YES! Correct, THANKS for helping me on my review


billybob123

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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