Hand Holdings has 4 major investments in its portfolio, and you have been asked to determine their current market value. Its holdings are as follows 1. It purchased an annuity from Best Financial 7 years ago. At that time, it paid a lump-sum of $10 million, and in return, Hand was promised a monthly payment of $120,000, for a total of 15 years from date of purchase. 2. It owns 300,000 shares of Rockwell Systems, for which it paid $15 per share in 2018. Rockwells dividend has been growing at a steady rate of 3.1% per year. Given the somewhat risky nature of the companys business model, the markets required return on its shares has been 9.5%. 3. Last week, it bought $50 million (par value) of newly issued 10-year U.S. Government Treasury Notes. They were purchased at par (i.e., exactly the principal amount), and have a 2.5% coupon rate, paid annually. (Hint: Bonds only trade at par when the coupon rate is exactly equal to its required return.) 4. Two years ago, it entered into a 7-year interest-rate swap agreement, with a $25 million notional amount, under which it pays Lackov Trust a fixed rate of 5.1%, and receives 3-month SOFR. Payments are made quarterly. Assignment: Calculate the current value of each of these holdings, using the following assumptions. 1. Hand was just offered a new 8-year, $25 million annuity from Best Financial, paying $325,000 per month. (Hint: Use the terms of this offer to calculate the current market rate.) 2. Rockwell Systems has recently gone private, and thus does not have a quoted market price per share. However, it continues to pay dividends regularly, and its most recent dividend was $1.45, and is still expected to grow at 3.1% per year. However, as a privately-held company, an additional liquidity premium of 1.5% needs to be added to its required return. 3. The Gross Domestic Product report issued this morning suggests that inflation will be 0.2% higher than the market had been previously expected. 10-year Treasury Notes are now trading with a yield of 2.9%. 4. 5-year interest rate swaps are now being quoted at 6.2% (pay fixed, receive 3-month SOFR; payments made quarterly), and 7-year interest rate swaps at 6.8% (pay fixed, receive 3-month SOFR; payments made quarterly). (Hint: Calculate the dollar-amount of contractual fixed payments to Lackov Trust under the swap agreement.) Note: Assume the floating-rate portion is exactly at market, i.e., no gain or loss in value, and will continue to be regardless of market changes. Thus, only the fixed-rate portion is subject to price change.