18. An investment has two options: 1) The first option includes annual payments of $1000, $1100, and $2200 at the end of each of the next three years, respectively. 2) The other option is the payment of one lump sum amount today. You are trying to decide which offer to accept given the fact that your discount rate is 10 percent. What is the minimum amount that you will accept today if you are to select the lump sum offer? O a) 2719 Ob) 3300 C 3000 O d) 2479 e) None of the above 19. A 5-year corporate bond is yielding 12.3% per year. The real risk-free rate (r*) is 3.5%. Inflation is expeoted to be 3% this year. 4% next year, and 6% for all years after that. The liquidity premium is 1.2%, and default risk premium is 2.1%. What is the maturity risk premium for this 5-year bond? a) 0.5% b) 0.75% C) 1% 19. A 5-year corporate bond is yielding 12.3% per year. The real risk-free rate (r") is 3.5%. Inflation is expected to be 3% this year, 4% next year, and 6% for all years after that. The liquidity premium is 1.2%, and default risk premium is 2.1%. What is the maturity risk premium for this 5-year bond? a) 0.5% O b) 0.75% O c) 1% d) 2% O e) None of the above