What kinds of credit do you think you will be using in five years? How will you establish a good credit rating to be eligible for increasing credit limits and privileges?

What reasons would a business have to request a credit report?

Are credit guard companies a good deal for consumers? Why or why not? Why would a person choose to freeze his or her credit?

Visit the web site of one of the three major credit bureaus listed in Lesson 17. 1. In no more than one page, summarize what the bureau includes in its credit reports and outline the procedure you would have to follow to get a copy of your own report.

What is the purpose of a pawnshop? What kind of merchandise can you find at a pawnshop?

Suppose that you buy a two-year 8% bond at its face value.
a. What will be your total nominal return over the two years if inflation is 3% in the first year and 5% in the second? What will be your total real return?

How are consumer finance companies different from sales finance companies? Why do finance companies charge high interest rates?

Suppose that you buy a two-year 8% bond at its face value.
b. Now suppose that the bond is a TIPS. What will be your total two-year real and nominal returns?

The two-year interest rate is 10% and the expected annual inflation rate is 5%.

a. What is the expected real interest rate?

b. If the expected rate of inflation suddenly rises to 7%, what does

Fisher's theory say about how the real interest rate will change? What about the nominal rate?

The two-year interest rate is 10% and the expected annual inflation rate is 5%.

a. What is the expected real interest rate?

b. If the expected rate of inflation suddenly rises to 7%, what does Fisher's theory say about how the real interest rate will change? What about the nominal rate?

The two-year interest rate is 10% and the expected annual inflation rate is 5%.
a. What is the expected real interest rate?

A 3-year bond with 10% coupon rate and $1,000 face value yields 8% assuming annual coupon payment. Calculate the price of the bond.

Suppose a $10$-year, $\$ 1000$ bond with a $10 \%$ coupon rate and semiannual coupons is trading for a price of $\$ 912.47$

a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)?

b. If the bond's yield to maturity changes to $9 \%$ APR, what will the bond's price be?

Suppose that Ally Financial Inc. issued a bond with $10$ years until maturity, a face value of $\$ 1000$, and a coupon rate of $11 \%$ (annual payments). The yield to maturity on this bond when it was issued was $5 \%$.

a. What was the price of this bond when it was issued?

b. Assuming the yield to maturity remains constant, what is the price of the bond immediately before it makes its first coupon payment?

c. Assuming the yield to maturity remains constant, what is the price of the bond immediately after it makes its first coupon payment?