11. (a) What is the value at the end of Year 3 of the following cash flow stream if the quoted interest rate is 10%, compounded semiannually?

(b) What is the PV of the same stream?

(c) Is the stream an annuity?

(d) An important rule is that you should never show a simple rate on a timeline or use it in calculations unless what condition holds? (Hint: Think of annual compounding, when rSIMPLE = rEAR = rPER.) What would be wrong with your answer to parts (1) and (2) if you used the simple rate 10%rather than the periodic rate rSIMPLE/2 = 10%/2 = 5%?