Exercise 3.1 (optional) A 10-year bond has a nominal interest rate of 5% pa, interest is paid annually and the redemption will be at 100% at the end of the tenth year. You hold 10,000 nominal value of the newly issued debt. a) Write down the cash flow of your investment. b) Calculate the present value of the interest payments at a discount rate of 3% pa c) Calculate the present value of the final repayment at a discount rate of 3% per annum d) What is the total value of the bond at a discount rate of 3% pa? e) Solve the parts b) to d) with a discount rate of 7% pa