ECON 3303 MONEY AND BAN KING Name QUIZ #1 1. How much is $175 to be received in exactly one year worth to you today if the interest rate is 20%? 2. A lottery claims its grand prize is $15 million, payable over 5 years at $3,000,000 per year. If the first payment is made immediately, what is the grand prize really worth? Use an interest rate of 4%. 3. Consider a bond with a 6% annual coupon and a face value of $900.Complete the following table. (Enter your responses rounded to two decimal places.) Years to Maturity Yield to Maturity Current Price 2 3 5 8% 4. What is the price of a perpetuity that has a coupon of $55 per year and a yield to maturity of 2.5%? The price of the perpetuity is . If the yield to maturity doubles , what will happen to its price? The new price is