Real estate case study

Which alternative, if either, should the spirits pursue?

1-
a) First bond =
I= 10%
N=15
Annual yield = 10.48
Second bond
I=9.72
N=15
Annual yield = 10.71

b) Pv= - 10,000,000
I=10
N=15
Fv = 41,772,482

Pv=-10,000,000
N=180
I= 0.81
Fv= 42,771,909

2-
Loan 30,000
Term 30
I/y= 3%
Pmt= 1530.58

Balance loan= 13056.14

A)
-9139.29
12%
1617.51
86.93

B)
-11958.66
2611.23
5
1097.48

4-

a) at what price should each bond currently sell?

Bond A
Price of Bond = p(rate nper, pmt,fv)
Price of Bond = pv (4%, 10,45,1000)
Price of Bond = U_A_T 1040.55
Bond B
Price of Bond = pv (rate, nper, pmt,fv)
Price of Bond = p(4%,20,40,1000)
Price of Bond = U AT 1000
Bond C
Price of Bond = p(rate, nper, pmt,fv)
Price of Bond = pv (4%, 20,0,1000)
Price of Bond = $ 456.39
Note : Nper is semi annual period
B)
Maximum S.A. Nationaliste bonds
Implied YTM =rate(nper, pmt, pv,fv)
Implied YTM = rate(10,80,-990, 1000)
Implied YTM = 8.15%
Effective Annual YTM of Bond B = (1+4%)^2 -1 =8.16%

should invest in Bond B