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At a discount rate of 9.0%, what is the future value of the following cash flow stream? Show your work. II. (20 marks: do 2

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At a discount rate of 9.0%, what is the future value of the following cash flow stream? Show your work. II. (20 marks: do 2 out of 3 ) Suppose the interest rate on a 3-year government bond is 4.50% and that on a 6-year government bond is 5.90%. What is the market's forecast for 3 -year rates 3 years from now, assuming the pure expectations theory is correct? Show your work: III. (20 marks: do 2 out of 3 ) Roadrunner Corp issued 25-year bonds 5 years ago at a coupon rate of 10.2 percent and par value of $1,000. The bonds make quarterly payments. If the yield to maturity is 8%, how much should you be willing to pay for the bond? Show your work

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