17. On January 1st, a woman in a mascot costume gives you $50. She promises to give you $60 again at the beginning of the next 4 years (meaning the next payment comes at the beginning of the next year). Given that you can invest these funds into an account that pays 3% compounded annually, what is the present value of this stream of cash flows? a. $212.47 b. $235.85 C$249.27 d. $286.42 e. $307.18 18. Reginald buys a bond with 5 remaining years to maturity. The bond has a coupon rate of 5% paid annually and a par value of $1,000. If he pays $975 for the bond, what is the capital gains yield? a. 46% 56% C..66% d. 76% e. .86% 20. Blair owns a bond with 5 remaining years to maturity. Serena owns a bond with 10 remaining years to maturity. Both bonds are valued at par and have the same coupon rate and par value. Suppose the interest rate declines. Do the bonds increase or decrease in value, and whose bond is affected most? a. Both bonds increase in value; Blair's bond increases more b. Both bonds increase in value; Serena's bond increases more C. Both bonds decrease in value; Blair's bond decreases more d. Both bonds decrease in value; Serena's bond decreases more e. Both bonds stay the same price