16-point question 3. Do each of the following. i. Indicate i…
16-point question 3. Do each of the following. i. Indicate in the space provided if a person should be more or less willing to buy a house under the following circumstances: a. You just inherited $100,000. ________ b. Real estate commissions rise from 6% to 7% of the sales price. ________ c. you expect Microsoft stock to double in value over the next year. ________ d. prices in the stock market become less volatile. ________ e. you expect housing prices to rise. ________ ii. If mortgage rates rise from 5% to 10 % but the expected rate of increase in housing prices rises from 2% to 9%, explain if people are going to be more willing or less willing to buy houses. iii. Calculate the following: a bond with a coupon rate of 4.8% will mature in 5 years. The $10,000 par value instrument is currently selling for $9,875. Calculate the current yield on this bond. Calculate the average annual capital gain or loss the owner will incur if the bond is held to maturity. Calculate the approximate yield to maturity on this bond.