1. It purchased an annuity from Z-Best Financial 10 years ago. At that time, it paid ZBF a lump-sum of $10 million, and in return, FI Global was promised a monthly payment of $65,995.57, for a total of 20 years (from date of purchase). Note: For this annuity, like most nancial products, payments are paid/received at the end of the period ("payment in arrears "). In that case, the "Type\" field in the Excel formulae has a value of 0, or can be left blank. 2. It owns 200,000 shares of Wiley Coyote Products, for which it paid $35 per share in 2008. Wiley's most recent dividend payment was $1.50, and the dividend has been growing at a steady rate of 3% per year. Given the somewhat risky nature of the company's business model, the market's required return on its shares is 7%. 3. It holds $40 million of newly issued 10-year US. Government Treasury Notes. They were purchased at par (i.e., exactly the principal amount), and have a 2.8% coupon rate, paid annually. (Hint: Bonds only trade at par when the coupon rate is exactly equal to its required return.) 4. Two years ago, it entered into an interest-rate swap agreement, with a $10 million notional amount, 5 years, under which it pays Goldman Trust 4.5% semi-annually, and receives 6-month LIBOR. Assignment: Calculate the current value of each of these holdings, using the following assumptions. 0 FIGH was just offered a 10-year, $2 million annuity from ZBest, paying $20,249.03 per month. (Hint: Use the terms of this offer to calculate the current market rate.)