Answer the following question regarding annuities, perpetuities, loans, and bond valuation:

a. You are interested in buying a house and renting it out. You expect to receive a monthly net income of $1700 from rent. You then expect to sell the house for $293,000 at the end of 61 months. If your discount rate on this investment is 7% per year (compounded monthly), how much is this property worth to you today? Assume that you receive rent at the beginning of each month and you receive the first rent the same day you purchase the property. Round to the nearest cent. Hint: 1) This is a monthly annuity due combined with a single cash flow at the end, and you are looking for the total PV. 2) The question provides the number of months, not years; so nxm is directly given to you. 3) The discount rate provided is the annual rate compounded monthly, so you need to discount both the annuity due and the single cash flow at the end using the PV formulas with monthly compounding.]

b. Following her 18th birthday, Madison began investing $37 at the end of each week in an account earning 5% per year. She plans to continue making weekly investments until she turns 68. Instead, if she hadn't started investing until she turned 54, how much would she have had to invest each week in order to have the same retirement nest egg at age 68? Round to the nearest cent. [Hint: Find the size of the retirement nest egg under the first 50-year scenario, then use that number to solve for CF under the shorter investment horizon scenario.]

c. An asset is projected to generate 16 annual cash flows of $4,000 starting 6 years from today. If the discount rate is 9%, how much is this asset worth today? Round to the nearest cent. [Hint: This is a deferred annuity. Remember the rule about where on the timeline PV annuity goes when you have a deferred annuity.]

d. A zero-coupon bond with a face value of $100 is currently trading at $89.7. If time to maturity is 5 years, what is this bond's yield-to-maturity? Round to the hundredth of a percent. (e.g., 4.32% =4.32)

e. Suppose you structured a bond deal for Kanye West that paid him a large lump sum amount upfront, with future royalties and streaming revenues from his albums going towards payments to bondholders. Each bond has a face value of $1,000 and a coupon rate of 7.7% with semi-annual coupons. If the bonds have 9 years remaining until maturity and the current yield to maturity is 9.7%, how much is each bond worth? Round to the nearest cent.

f. A bond with a $1,000 face value has a 6% annual coupon rate. The bond matures in 14 years. The current YTM on the bond is 3.6%. If you were to buy this bond and hold it for 5 years, how much would the price change while you hold it? Assume the bond's YTM remains the same. Answer in dollars and round to the nearest cent. Hint: Compute the prices under the two scenarios and calculate the difference (P2 - P1). For example, if the price dropped, the change would be negative.