2. (Time Value of Money) Answer the following questions, please show work for each item. (a) (4 points) Suppose you have a credit card debt of $10,000 at 25% per annum interest rate, compounded daily. You intend to maintain this balance and pay back one year from today. Calculate how much you would need to pay back. (b) (4 points) Your trading desk is purchasing a 3-month $100,000 face value Treasury bill at 4% per annum yield. Calculate the price of this Treasury bill. (c) (5 points) In the last 2 months, the 30-year mortgage interest rate has increased from 4% to 6%, raising concerns for homeownership cost. Use Excel to compute by how much would a monthly mortgage payment for $500,000 30-year home loan increase? Explain why the large percentage increase in one or two sentences. (Hint: Out of your mortgage, what do most of the payments go to?)