Consider the following cash flows and calculate the Present Value of this cash flow stream if the interest rate is 3%. Please include two decimals in your answer and a negative if appropriate

Year 0: $398

Year 1: $0

Year 2: $0

Year 3: $-280

Year 4: $179

You own a bond with a 5% coupon rate and $1,000 par value. Assume payments are made semi-annually and the bond matures in 20 years. The annual market interest rate is 9% percent. Calculate the value of the bond

		$634.86
		$1065.04
		$631.97
		$739.84

Consider a bond that gives the bondholder the option to sell the bond to the issuer at a pre-specified price and time. This options is likely to be used (exercised) in which of the following cases?

		when interest rates increase
		when the stock price decreases
		when the stock price increases
		when callable bonds are sold
		when interest rates decrease