Q1) You are considering buying a car

Subject:FinancePrice: Bought3

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Q1) You are considering buying a car. You want to spend a maximum

of $15,000 which includes your $2,000 down payment. You find the same car at two different dealerships. Determine which is the better deal.
Clunker Cars offer you annual payments of $3,060 for 5 years. Calculate the Rate.
Fast Cash Auto Sales wants to offer you financing for 5 years at 4%, calculate the payment.
What is the present value, and future value of both.


Q2) Calculate the following amounts for these bond scenarios:
A. Compute the bond price quoted at 97.
B. Compute the bond price quoted at 116.50
C. What is the annual coupon for 5.15% bond?
D. Calculate the price of a Zero Coupon bond that matures in 15 years with a market rate of 5.75%
E. Calculate the rate of a Zero Coupon bond that matures in 15 years with a market price of 48.