Consider the following information obtained today: Relevant rate of return observed in the market = 6% per annum compoundingmonthly Expected cash flow in 1 years time: $1000 Which of the following is closest to the PV of the cash flow given the informationabove?

$942.18

$970.52

$943.40

$941.91

2

Consider the following information as it relates to a perpetuity-style security:

Relevant rate of return observed in market = 6% per annum compounding half-yearly

A regular cash flow of $50 per half year will be paid in perpetuity, with the firstcash flow occurring today

Which of the following is closest to the PV of the cash flow stream expected of thisperpetuity?

$1,618.12

$1,666.67

$1,525.24

$1,716.67