An annuity pays $2,000 every year for a total of 6 payments. The first payment will arrive at the end of 9th year. The interest rate is 12% per annum. Find the Present Value of the annuity (at T=0) Fill in the cells highlighted in Yellow. PMT = IN = RATE = Type = PV = Point of Time at which the PV (calculation above) will arrive PV at T = 0 Suppose US Treasury issues a perpetual bond paying a coupon of $400 (paid annually). If your required rate of return is 3% per annum, then how much you will be willing to pay for the bond Fill in the cells highlighted in Yellow. Annual Coupon Amount Required Rate (RATE) PV of perpetual Bond