1.

2.

Your broker has proposed that you pay 557000 today for an ordinary annuity of $6000 per year for 9 years. Your opportunity cost of funds is 5.31% and the return from this investment is tax-free. How much should you pay today for the ordinary annuity? Present your answer as a whole number to two decimals (including the $ symbol), e.g. $3210.65 (25% marks will be deducted if the $ symbol is not provided). Answer: Assume a $1,000 face value, zero-coupon bond has 12 years remaining to maturity. The bond is currently priced to yield 4%, compounded semi-annually. What is the value of this bond? Present your answer as a whole number to two decimals (including the $ symbol), e.g. $987.65 (25% marks will be deducted if the $ symbol is not provided)