A security with risk-free future cashflow of $1,590 one year from today is trading at $1,540. Is the security over-priced if the risk-free interest rate is 6% ? True False Taking up a project with NPV of $5,000 is equivalent to receiving $5,000 cash today. True False What will be an annuity's price today if it will pay $2,000 at each year-end over the next 5 years? The annual interest rate is 8%. a) $8,624.25 b) $10,000 c) $14,693.28 d) $2,938.60 e) None of the above You are considering taking a 5-year, 10% annual interest rate loan of $8,339.73 which can be paid off with $2,200 year-end payments. What will be your payment each year if your payments were made at the start of each year over the next 5 years? a) $1,950 b) $2,050 c) $2,000 d) $2,100 e) None of the above