3. Problem Three: Fiterman Bank expects to next 15 years. The nominal interest ra Citerman Bank expects to receive $250,000 at the end of each year, for the The nominal interest rate is 4.25%. As shown in class, (a) use a Discounted WIDCE) model to compute the present value of these future cash flows, and verify ur answer by using the NPV function, (b) if the interest rate changes to 3.75%, how does that affect your present value (all other parameters being the same as in part lal?! 1. Exercise One: J.P. Morgan expects to receive $1,500,000 at the end of each year, for the next 20 years. The nominal interest rate is 2.25%. As shown in class, (a) use a Discounted Cash Flow (DCF) model to compute the present value of these future cash flows, (b) use the NPV function to verify your answer from part (a), (c) if the interest rate changes to 2.50%, how does that affect your present value - i.e. use a DCF model, and verify your answer by using the NPV function (all other parameters being the same as in part (a))? 1. Exercise One: J.P. Morgan expects next 20 years. The nominal inter Cash Flow (DCF) model to compute Morgan expects to receive $1,500,000 at the end of each year, for the s The nominal interest rate is 2.25%. As shown in class, (a) use a Discounted (DCE) model to compute the present value of these future cash flows, (b) use the NPV function to verify your answer from part (a), (c) if the interest rate change does that affect your present value - i.e. use a DCF model, and verify your answer by using the NPV function (all other parameters being the same as in part (a))