1) Las Paletas Corporation has two different bonds currently outstanding. Bond

1) Las Paletas Corporation has two different bonds currently outstanding. Bond M has a face value of $10000 and matures in 20 years. The bond
makes no payments for the first six years then pays $1200 every six months over the subsequent eight years and finally pays $1500 every six months over the
last six years. Bond N also has a face value of $10000 and a maturity of 20 years; it makes no coupon payments over the life of the bond. The required return
on both these bonds is 6 percent compounded semiannually.

2) You want to buy a new sports car from Muscle Motors for $88000. The contract is in the form of a 48-month
annuity due at a 7.75 percent APR. What will your monthly payment be?

4)

Ninja Co. issued 11-year bonds a year ago at a coupon rate of 8.3 percent. The bonds make semiannual payments. If the YTM on these bonds is 6.6
percent what is the current bond price? 5) You have 39 years left until retirement and want to retire with $3.7 million. Your salary is paid annually and you will
receive $54000 at the end of the current year. Your salary will increase at 4.2 percent per year and you can earn a 12.2 percent return on
the money you invest. If you save a constant percentage of your salary what percentage of your salary must you save each year?