6. My dad promises me a cash gift of $15,000 three years from today if I graduate from college in 3 years. What is the value of this gift today if the time value of money is 3%? A. $11,591.15 B. $13,727.12 C. $12.200.11 D. $14,727.12 E. None of the above 7. Which of the following statements is incorrect? A. When interest rates rise, bond prices fall. B. Short-term bonds are riskier than long-term bonds, holding everything else constant. C. A convertible bond can be converted into a specified number of common shares of the issuer before the bond expires. D. A callable bond can be redeemed before maturity by the issuer. 8. What is the present value of the following cash flows, assuming a 7% opportunity cost? Assume the cash flows occur at the end of the stated years. Year 1 2 3 Cash Flow $100 $2,000 $1,000,000 $4,000,000 $2,002,100 $3,869,719.06 C. $4,062,366.39 $4,632,614.27 None of the above 4 A. B. D. E. 1,261 words