Assume that you are nearing graduation and that you have applied for a job with a local bank. As part of the bank's evaluation process, you have been asked to take an examination that covers several financial analysis techniques. The first section of the test addresses time value of money analysis. See how you would do by answering the following questions: i. Will the effective annual rate ever be equal to the simple (quoted) rate? Explain. j. (1) What is the value at the end of Year 3 of the following cash flow stream if the quoted interest rate is 10%, compounded semiannually? 0 1 3 2 + 100 100 100 (2) What is the PV of the same stream? (3) is the stream an annuity? (4) An important rule is that you should never show a simple rate on a timeline or use it in calculations unless what condition holds? (Hint. Think of annual compounding, when (smele = Tear = tece.) What would be wrong with your answer to parts (1) and (2) if you used the simple rate 10%rather than the periodic rate simple/2 = 10%/2 = 5%