Calculate the present value of a $1,000 zero-coupon bond with 10 years to maturity if the required annual interest rate is 6.75%. A bank issues a $100,000 variable-rate, 25-year mortgage with a nominal annual rate of 4.5%. If the required rate increases to 5.0% after the first six months, what is the impact on the interest income for the first 12 months? Which firms are most likely to use bank financing rather than to issue bonds or stocks to finance their activities? Why? The more collateral there is backing a loan, the less the lender has to worry about adverse selection. " Is this statement true, false, or uncertain? Explain your answer. If the pension fund you manage expects to have an inflow of $120 million six months from now, what forward contract would you seek to enter into to lock in current interest rates? If the portfolio you manage is holding $25 million of 6s of 2029 Treasury bonds with a price of 110, what forward contract would you enter into to hedge the interest-rate risk on these bonds over the coming year