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    Problems on interest rate and yield to maturity

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    Interest rate and yield to maturity. You can use excel or financial calculator:
    1.    What is the fair value of a 2-year $100,000 T-note with no coupon payment if the current market interest rate is 10%?
    2.    If you obtain a 30 year mortgage loan of $100,000, find your monthly payment if annual interest rate is 3%, 5%, 10%.
    3.    You want to buy a 10% coupon bond with a face value of 100000 that yields 6% to maturity of 5 years. What is the price of the bond you want to buy?

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    Solution Preview


    Please find tutorial and help related to how to calculate bond value, interest rates and YTM in the attached files.

    This response should be useful for you to develop better understanding with regard to the given topics. Kindly use this work for your reference only and please do not use this content in your assignment or homework.
    Question 1
    Process to Calculate Fair Value in Excel
    Fair value of T-note can be computed by using PV formula in excel that ...

    Solution Summary

    The expert examines the interest rates and yield to maturity.