1. Construct a timeline from your perspective: You borrow $1,200 from the bank at a 5%/year interest rate payable at the end of each year, and you promise to repay principal as follows: $500 in 2 years, and $700 at final maturity in 4 years.

2. Forever Corp is offering a unique perpetual bond that will pay $50 next year where the $50 will grow at 4%/year in the future. If the market rate is 8.25%/year, what is its current market price?

3. You won the lottery and have settled on the annuity option that pays $750,000/year for 20 years. If you believe you can reliably earn 3%/year, what is its value to you now?

4. WeWorks 7.875% unsecured bonds price declined from 87.5 to 61.3. A) What are those prices in dollars? B) Did the market yield on WeWorks bond go up or down?

5. Draw a timeline for a bullet bond, face value of $1,000, with 3 years remaining to maturity that pays a coupon rate of 5.5%/year semi-annually.

6, What is the market price of the bond in Q #5 if the current market rate is 3%/year?