Consider the following details for a bond issued by Bravo Incorporated. Suppose that today's date is 8/5/2004, what should the current trading price by lord this bond if investors want a 12% annual return? A report from the marketing department indicates that a new product will generate the following revenue stream: $62, 500 in the first year. $89, 400 m year two. $136, 200 in year three, $128, 300 in year four, and $112,000 m year five. If your firm's discount rate is 11% and the cash Rows are received at the end of each year, what is the present value of this cash flow stream? You buy a house for $220,000 in a neighborhood where home prices have risen 5% annually on average You suspect that growth in home prices will slow to an average of 3.5% per year over the next five years. If your growth estimate of 3.5% growth is correct, how much less will your house be worth five years compared with 5% growth