3. What is each of the following investments worth today assuming an annual discount rate of 7%? (a) A 3-year maturity B rated corporate bond with 4% annual interest payments and a principal value of 1,000 (b) 50 shares of stock of a company whose senior debt is rated BBB. The stock pays dividends today of 0.75 and has expected dividend growth this year and forever of 3%. (c) A level pay mortgage on a small retail shop with a maturity of 5 years and quarterly payments of 55. (d) A 900 one-year term loan for a start-up company (with interest payable at the end of one year) and priced at 12-month LIBOR with a margin of 150 basis points where 12- month LIBOR is 3.5%. (e) A British government Consol paying 60 annually. Which investment is the least risky? Explain fully why