On January 1, Year 1, Turner Company borrowed $58,000 from Lessing Inc. and signed a three-year installment note to be paid in three equal payments at the end of each year. The present value of an annuity of $1 for 3 periods at 7% is 2.62432. What is the amount of the installment payment?

Currently, 30-year and 15-year mortgage loans can be taken with 3% and 2.5% annual interest rates, respectively. If you want to purchase a $300,000 value house with a 5% down payment. What would be your monthly payments for each mortgage loans; 30-year? and 15-year mortgages? Please show me the work?

Analyze a project which has an investment cost of $2,000.  Every year, starting next year (t=1), the project will generate $100 in revenue, but it will also incur $30 in expenses.  The project will be considered an on-going project going on forever.  If the cost of financing this project is 6%, then the NPV of the project is what?

Jack bought a five-year 4.25% annual coupon bond for $974 a year ago.

Today, he sold the bond at the market yield of 4%.

What is Jack's approximate real rate of return if the inflation rate over the past year was 2.2%?

a) 1.80%

b) 2.05%

c) 5.76%

d) 5.98%

Last year Darlington Equipment Company issues a 10-year, 12% coupon bond at its par value of $1000. Interest is paid quarterly. Currently the bond sells for $1,200.

a. What is the bonds yield to maturity?

b. If the bond can be called in 5 years for a redemption price of $1,165, what is the bond's yield to call?

Please show your inputs using a financial calculator

One year ago, Alpha Supply issued 5-year bonds at par. The bonds have a coupon rate of 6 percent and pay interest semi-annually. Today, the market rate of interest on these bonds is 6.5 percent.

What is the price of these bonds today? $

Compared to the issue price, by what percentage has the price of these bonds changed?  %

(Use a negative to denote a decrease and a positive value to denote an increase)

On January 1, Year 1, Stratton Company borrowed $140,000 on a 10-year, 6% installment note payable. The terms of the note require Stratton to pay 10 equal payments of $19,022 each December 31 for 10 years. The required general journal entry to record the payment on the note on December 31, Year 2 is:

Multiple Choice

• Debit Interest Expense $8,400; debit Notes Payable $10,622; credit Cash $19,022.

• Debit Notes Payable $140,000; debit Interest Expense $5,022; credit Cash $19,022.

• Debit Notes Payable $8,400; debit Interest Expense $10,622; credit Cash $19,022.

• Debit Interest Expense $7,763; debit Notes Payable $11,259; credit Cash $19,022.

• Debit Notes Payable $19,022; credit Cash $19,022.

On January 1, Year 1, Eureka Company issued $120,000 of 6-year, 4% bonds at face value. The annual cash payment for interest is due on January 1 of each year beginning January 1, Year 2. Based on this information, what is the total amount of liabilities related to these bonds that will be reported on the balance sheet at December 31, Year 1? (Hint: Consider the interest that might be owed to bondholders at December 31, Year 1.)

A life insurance company sells a $250,000 1-year term life insurance policy to a 20-year old male for $350. The probability this person survives the year is 0.98734. Compute the expected value of this policy to the insurance company to the nearest 0.01.

An insurance company sells a two-year term life insurance policy to an 80-year-old woman. The woman pays a premium of $1,000 per year. If she dies within one of the insured years, the insurance company will pay $20,000 to her beneficiary. According to the US Centers for Disease Control and Prevention, the probability that an 80-year-old woman will be alive one year later is 0.9516 and the probability that an 80-year-old woman will be alive two years later is 0.9512 Find the expected value for the insurance company for that two year term policy.