A) Mr. Paul, who is currently 45 years old, is your client. He, now, wants to begin saving for retirement. You advised him to put $ 15,000 a year into the stock market. You estimate that the markets return will be, on average, 12 percent a year. Assume the investment will be made at the end of the year. I. If the client follows your advice, how much money will he have by age 60? II. How much will she have by age 70? (B) Vanguard has just signed a 10-year lease to rent out office space for $ 100,000 per year. Payments are made at the beginning of each year. If the firm's interest rate is 7.65%, find the present value of the lease payments. (C) HBFC Corporation has just issued a 12-year bond, and it will be a 12% semi-annual coupon bond with a par value of $1,000. It is assumed that, it may be called back in 6 years at a call price of $1,120. The bond sells for $1,190. I. What is the bonds current yield? II. What is the bonds yield to call? (D) Alibaba Corporation is expanding rapidly, and it does not pay any dividends because it currently needs to retain all of its earnings. However, investors expect Alibaba to begin paying dividends, with the first dividend of $1.20 coming 3 years from today. The dividend should grow rapidly, at a rate of 50% per year during next 2 years. After Year 5, the company should grow at a constant rate of 8% per year. If the required return on the stock is 15%, what is the value of the stock today?