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(A). A company offer annual paymenss of $4000 at the end of each year for the next 3 years? What is the present value of
(A). A company offer annual paymenss of $4000 at the end of each year for the next 3 years? What is the present value of this annuity ediscounted at 26.7% pen year? Assume the company offers arnual payments of \$ 4000 at he beginning of each year for the next 4 years. What is the present value of this anrivity disscounted at 25.5% ? (B). Aseume that you hivest your funds at an Interert rave of 10\%. What will be your real rates of interest of the hmfation Inflation rave o @2\% (b) 6% . Suppose you have a $5000 bank deposits. The interest rase is 6%. Comprunded quasterly for 1 year. What is the effecrive Annual interest rove (5ak)? (D) End P has a \$1000 face value and provides an 8% annual Coupon for 30 years. The oppopriare discount rates is 10\%. What is the value of the coufon bond? Assume rond P has a of tooo face value and provides an 8% annual cospon. The appropriate discount rate 1610%. Whas is the value of the Couforl bond? THE END
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