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8:27 Question Full View : You asked 15m ago Aske in Finance 1. Calculate the present value of a $636 cash flow that is expected

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8:27 Question Full View : You asked 15m ago Aske in Finance 1. Calculate the present value of a $636 cash flow that is expected to be received in 5 years from now. Assume a 10% APR interest rate that is compounded quarterly. Enter final answer using two decimal places. 2. A zero coupon bond (coupon rate=0%) has five years to maturity. Its yield to maturity is 4.4%(assume annual compounding) and its face value is 1,000. If interest rates(and bond YTM) suddenly go down by 60 basis points (-6 percent of 1%) what is the predicted price of the bond immediately after the rate drop using the duration approximation? 3. A perpetuity promises to make an infinite number of annual payments. Each payment will be $200 and the first payment will occur in 5 years from today. If the interest rate is 10%, what is the value of the perpetuity today? Round final answer two decimal places. 4. An annuity promises to make 10 annual payments of $100. The first payment will be received 15 years from today. If the interest rate is 6%, what is the value of the annuity at the time of its last payment (24 years from today)? Round to two decimal places. Hang tight

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