ent Number: 20339373 9. You are considering a fixed income bond that has a continuous stream of payments of $300 per year. Yesterday, the appropriate discount rate was 9%. However, today the interest rates increased. The new appropriate discount rate is now 11%. What can you say about the value of this investment? a) The financial instrument became more valuable. b) The financial instrument became less valuable. c) The financial instrument did not change in value. d) There is not enough information to say. 10. Starting from today (t=0), you are saving $25,000 a year for the next four years (five investments in total). You want to spend all of your savings at the end of the fifth and the sixth year equally. If the market interest rate is 7%, how much can you spend at the end of the fifth year? a) $82,300. b) $79,517. c) $76,916. d) $62,500.

9. You are considering a fixed income bond that has a continuous stream of payments of $300 per year. Yesterday, the appropriate discount rate was 9%. However, today the interest rates increased. The new appropriate discount rate is now 11%. What can you say about the value of this investment? a) The financial instrument became more valuable. b) The financial instrument became less valuable. c) The financial instrument did not change in value. d) There is not enough information to say. 10. Starting from today (t=0 ), you are saving $25,000 a year for the next four years (five investments in total). You want to spend all of your savings at the end of the fifth and the sixth year equally. If the market interest rate is 7%, how much can you spend at the end of the fifth year? a) $82,300. b) $79,517. c) $76,916. d) $62,500