1. A lottery claims its grand prize is $15 million, payable over 5 years at $3,000,000 per year. If the first payment is made immediately, what is the grand prize really worth? Use an interest rate of 7%.

The real value of the grand prize is

2. What is the yield to maturity (YTM) on a simple loan for $2,000 that requires a repayment of $20,000 in five years' time?

3. Consider a bond with a 7% annual coupon and a face value of $1,100

Complete the following table. (Enter your responses rounded to two decimal places.)

Years to Maturity	Yield to Maturity	Current Price
33	55%	$
33	77%	$
44	77%	$
66	55%	$
66	99%	$