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To pay for college, you borrowed $ 1000 loan from the Government High Education Fund that makes you pay $ 126 per year for 25 years

Economics

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To pay for college, you borrowed $ 1000 loan from the Government High Education Fund that makes you pay $ 126 per year for 25 years. However, you don't have to start making these payments until you graduate from the college two years from now. Calculate the yield to maturity. Why yield to maturity is important in pricing loans in financial system? Note: Your answers should be detailed with proper references. 4. Ahmad as a financial advisor has given you the following advice. "Long term bonds are the greatest investment because their interest rate is over 20%”. Is Ahmad, necessarily right? Justify your answer. Note: Your answers should be detailed with proper references.