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a. The Sisyphean Company has a bond outstanding with a face value of $5,000 that reaches...

a. The Sisyphean Company has a bond outstanding with a face value of $5,000 that reaches maturity in 8 years. The bond certificate indicates that the stated coupon rate for this bond is 8.9​% and that the coupon payments are to be made semiannually. Assuming that this bond trades for $4,892​,then the YTM for this bond is closest​ to:

a. 7.4%

b. 13%

c. 11.1%

d. 9.3%

B. Matthew wants to take out a loan to buy a car. He calculates that he can make repayments of $4,900 per year. If he can get a five​-year loan with an interest rate of 7.6​%, what is the maximum price he can pay for the​ car?

A. $27,681

B. $23,726

C.$31,635

D. $19,772

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