called for the salary to be paid in $25$ equal installments, with the first payment being made on July $1,2011.$ The agreement stipulated that the relevant interest rate applied to this deal would be $8\mathrm{.}7\%.$

Beginning on July $1,2011($and every July $1$ for the following $24$ years$),$ how much was Bobby Bonilla paid by the Mets? In other words, what is the value of each annual salary installment?

$($Please note: The details of the above agreement have been altered slightly from the actual scenario presented in the weekly lecture.$)$

The annual salary installment paid to Bobby Bonilla each year, beginning on July $1,2011,$ is:

$($round your answer to the nearest dollar$)$

Consider three securities that will pay risk$-$free cash flows over the next three years and that have the current market prices shown here:

$\backslash$table$[[\backslash$table$[[$Security$],[$Name$]],$Price Today $($$$),\backslash$table$[[$Cash Flow in$],[$One Year $($$$)]],\backslash$table$[[$Cash Flow in$],[$Two Years $($$$)]],\backslash$table$[[$Cash Flow in$],[$Three Years $($$$)]]],[$B$1,$$$93\mathrm{.}46,100,0,0],[$B$2,$$$86\mathrm{.}21,0,100,0],[$B$3,$$$395\mathrm{.}82,0,0,500]]$

Calculate the no$-$arbitrage price, or the price that eliminates any arbitrage opportunities, of a new security, $B4,$ that pays risk$-$free cash flows of $$500$ in one year and $$1,000$ in three years.

The current no$-$arbitrage price of Security B$4$ is:

$($round your answer to two decimal places$)$