FIN JOI Spring 2021 5. The Maybe Pay Life Tournee Cole trying to sell you an investment policy that will pay you and your hein $30.000 per year forrer. If the required return on this investment is 43 percent, how much will you pay fow the policy in Find PV of perpetuity) 6. Find the EAR in each of the following cases APR 9 with quarterly compounding APR 18% with monthly compounding APR 14% with semi-annual compounding 7. Find the APR or stated rate, in cach of the following cases EAR 11.5% semi-annual compounding b. EAR 12% with quarterly compounding Chapter 7 8. Consider a 3-year bond with a face value of $1.000 that has a coupon rate of 7%, with semi-annual payments. What is the dollar amount of each coupon from this bond? b. How many times of coupon payments will be made to the maturity? 9. Assume that a bond will make coupon payments every six months as shown on the following timeline: 6 months 1 vear 18 months $20 $20 $20 2years $20 +$1000 1 What is the coupon rate (in percent)? b. What is the face value? 2