30. A young graduate has been offered a time-share on a condo in Steamboat Springs, Colorado. To be a part owner, the graduate must pay $1,849.00 at the end of each year for the next 20.00 years. If the graduates discount rate is 7.00%, what is the cost of this opportunity in todays dollars? In other words, what is the most the graduate should be willing to pay today instead of making payments?

32. Klingsman National Brand has bonds that are rated AA by Standard and Poors. The yield to maturity on AA bonds at the moment is 6.51%. You are trying to value a Klingsman bond that has 12.00 years until maturity and pays a 8.25% coupon. The bond has a $1,000 face value.

Suppose that the credit rating of Klingsman is reviewed and upgraded to AA+ by Standard and Poors. The yield to maturity on AA+ bonds at the moment is 0.10% lower than the previous yield to maturity on Klingsman debt. What will the new price be?

33.A real estate investor likes to flip houses. That is, he likes to buy a house at a low price and then flip or sell the house for a higher price. The investor is looking at a foreclosed house that will cost $233,072.00 today. He will invest an additional $42,703.00 in the first year of owning the house to upgrade its features. He then believes he can sell the house for $423,342.00 at the end of the second year.

What is the IRR of this investment?

Please answer all