2. Suppose a government borid will py $1,000 three years from now. If the going interest rate on 3 year government bonds is 4%, how much is the bond worth today? 3. The bank offers to sell you a bond for $613.81. No payments will be made until the bond matures 10 years from now, at which time it will tie redeemed for $1,000. What interest rate would you earn if you bought this bond at the offer price? 4. Nike corporation earnings per share in 2005 were $4, and its growth rate during the prior 5 years was 9% per year. If that growth rate were maintained, how long would it take for Nike's earnings per share to double? 5. You have a chance to buy an annuity that pays $1,000 at the end of each year for 5 years. You could earn 6% on your money in other investments with equal risk. What is the most you should pay for the annuity? 6. Suppose you inherited $202,000 and invested it at 6% per year. How much could you withdraw at the end of each of the next 15 years? 7. You are buying your first house for :\$220,000, and are paying $30,000 as a down payment. You have arranged to finance the remaining $190,000 30-vear mortgage with a 7% nominal interest rate and monthly payments. What are the equal monthly payments you must make? 8. Suppose you have to invest $15,00(1 at an interest rate of 3.5% (compounded quarterly) for a period of 5 years. What will be the value of your investment at the end of 5 years