3 questions let me know ok, see file:

Questions:

• Calculate the present value of:

PV	Years	Interest Rate	FV
	4	5 (pct)	7230
	8788.11

	5948.14
	5942.53

• Calculate the EAR given the following:

Stated Rate (APR, pct)	Compounding Period	EAR
8	quarterly	?
	8.24%

	7.77%
	8.16%

FASM Bank has designed a security that will pay a dividend of $10.00 in perpetuity. The dividend will be paid semi-annually and the initial dividend will be paid one half year from today. What is the price of the security if the stated annual interest rate is 5.5 percent, compounded semi-annually?

	$181.82
	$1090.91

$363.64

1. Calculate the present value of: PV Years Interest Rate FV 4 5 (pct) 7230 8788.11 5948.14 5942.53 2. Calculate the EAR given the following: Stated Rate (APR, pct) 8 8.24% Compounding Period quarterly EAR ? 7.77% 8.16% FASM Bank has designed a security that will pay a dividend of $10.00 in perpetuity. The dividend will be paid semi-annually and the initial dividend will be paid one half year from today. What is the price of the security if the stated annual interest rate is 5.5 percent, compounded semi-annually? $181.82 $1090.91 $363.64