1. You plan to buy a car in six years and expect to need approximately $40,000 . If a deposit is possible at 3.5% from now on, what is the difference between saving a certain amount of money right now to raise the necessary funds in 6 years and saving a certain amount in 1 year? (10 points) 2. You will receive $2,000 per month for 10 years starting a month later. If this can be operated at 7% per year, what is the current value of the prize money to be received in the future? (10 points) 3. Due to the spread of the coronavirus crisis, the Korea Development Bank has partially provided payment guarantee services for SME borrowing. As a result, Koryo companies borrowed 6 billion won with a maturity of 5 years, and instead of the original interest rate of 12%, they benefited from paying only 8 percent interest. How much is the Korea Development Bank's payment guarantee service worth to Korea Enterprises? 4. If a three-year bond with a $1,000, 8.0% coupon rate pays interest semiannually and its current YTM is 10%, what would the price of the bond be? 5. Your company plans to issue 18-year bonds to expand its business. Currently, in the bond market, bonds with similar credit ratings (coupon interest rates of 11%, interest payments every half year, $1,000) are traded at $1,459.51. What coupon rate should I set if I want to sell the new bond for $1,000 equal to its face value? (10 points) 6. Your company plans to pay a dividend of $4 at the end of this year and then increase the dividend by 4% per year. If the current stock price is $25, what is the required return on the company's stock? (10 points) 7. K-Park Co. has just paid $1 per share in dividends, which it plans to increase by 20% over the next three years and 5% permanently thereafter. If the shareholders' required return on the company was 15%, what would the company's current share price be? (10 points)

1. 6 $40,000 . 3.5% 6 1 ? (10)

2. 10 $2,000 . 7% ? (10)

3. . 5 60 12% 8% . ?

4. $1,000, 8.0% 3 YTM 10% ?

5. 18 . ( 11%, , $1,000) $1,459.51 . $1,000 ? (10)

6. $4 4% . $25 ? (10)

7. K-Park Co. $1 3 20%, 5% . 15% ? (10)