1. Present Value What is the present value of a $2,100 deposit in year 2 and another $2,600 deposit at the end of year 6 if interest rates are 7 percent?

• $3,660.08

• $2,726.00

• $3,131.81

• $3,566.71

2. Future Value of an Annuity What is the future value of a $1,600 annuity payment over 9 years if the interest rates are 8 percent?

• $3,198.41

• $15,552.00

• $19,980.09

• $17,645.56

1. Present Value What is the present value of a $2,100 deposit in year 2 and another $2,600 deposit at the end of year 6 if interest rates are 7 percent?

• $3,660.08

• $2,726.00

• $3,131.81

• $3,566.71

2. Future Value of an Annuity What is the future value of a $1,600 annuity payment over 9 years if the interest rates are 8 percent?

• $3,198.41

• $15,552.00

• $19,980.09

• $17,645.56

3. Determinants of Interest Rate for Individual Securities A particular security's default risk premium is 3.80 percent. For all securities, the inflation risk premium is 2.80 percent and the real interest rate is 2.65 percent. The security's liquidity risk premium is 1.15 percent and maturity risk premium is 1.70 percent. The security has no special covenants. What is the security's equilibrium rate of return?

• 4.95%

• 2.42%

• 24.20%

• 12.10%