1)Ayeza thinks of investing $10,000 a year in real terms into her investment account for the next four years. The relevant nominal discount rate is 15% and the ination rate is 4.2%. Calculate the real worth of the investment in today's dollars. (Show all the necessary steps of the calculations) [25 marks} 2)Colliers Concord Ltd. has recently issued a bond 535% coupon bonds outstanding with a current market price of $639.40. The yield to maturity is 11.20% and the face value is $1,000. Interest is paid semiannually. How many years is it until these bonds mature? (Show all the necessary steps of the calculations) (20 marks) 3) Manvester Steliing Inc. has a semiannual, 12-year bonds which is selling at par and have an effective annual yield of 4.652996. What is the amount of each interest payment if the face value of the bonds is $1,000? (Show all the necessary steps of the calculations) {20 marks) 4) Manning services oats a bond in the market a 6.5% coupon bond with annual payments. The bond stipulates that the yield to maturity is 611% and the maturity date is 7' years from today. Calculate the price of the bond if the face value of the bond is $1,000. Comment on the characteristics of this bond. {15 marks) 5) In the context of asset pricing. the nance literature implies that an investor will he indifferent hehveen two bonds which shows equal yields to maturity if they are of similar default risk. What are some of the factors which oould make an investor decide between bonds having similar characteristics of risks? Justify your answer. [20 marks)