1. tea & coffee place spent $10,000 to refurbish its current

1. Tea & Coffee Place spent $10,000 to refurbish its current facility. The firm borrowed 60 percent 

of the refurbishment cost at 8.0% percent interest for 3 years and the loan calls for three equal 

Don't use plagiarized sources. Get Your Custom Essay on
1. tea & coffee place spent $10,000 to refurbish its current
Just from $13/Page
Order Essay

annual payments. Prepare the amortization schedule for the three year loan. How much total 

interest is paid in 3 years? 

 

2. RG Builders issued a $1,000 par value bond that pays a 9 percent interest annually. The bond 

matures in 14 years and is currently selling at $1,120. Your required rate of return is 8.5 percent.

a. Compute the bond’s expected rate of return.

b. Determine the value of the bond to you, given your required rate of return.

c. Should you purchase the bond? Why?

 

Calculator

Calculate the price of your paper

Total price:$26
Our features

We've got everything to become your favourite writing service

Need a better grade?
We've got you covered.

Order your paper