as/gp/2015075418 159%O 112> PART 2. EXERCISES AND SHORT QUESTIONS (6 points) Exercises (2.5 points) 1. a. You must pay a creditor $8000 one year from now, $5000 two years from now, $4000 three years from now, $2000 four years from now. You would like to restructure the loan into four equal annual payments due at the end of each year If the agreed interest rate is 12% compounded annually, what is the payment? (0.5 points) b. What is the price of a 10 year zero coupon bond with redemption value $100 if the interest rate is assumed to be 6% pa.? (0.5 points) If a share has an annual dividend with the next dividend being S6.5 in one year's c. time and dividend growth is assumed to be 3% pa, what is the fair price of the share assuming interest rates of 7% pa? d. When you purchased a house, you took o e a mortgage with an interest rate of 6% per year. You have now decided to pay the mortgage off by repaying the outstanding balance. Calculate the annual payment What is the payoff amount if: You decided to pay off the mortgage immediately after the 12t payment is 40