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Help me with this question please! (a) If the interest rate is 10%, what is the present value of a security that pays you $1,000

Help me with this question please!

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(a) If the interest rate is 10%, what is the present value of a security that pays you $1,000 next year and $1 ,200 two years from now? If this security is currently sold for $2,000, is the yield to maturity greater than or less than 10%? (10 marks) (b) Write down the equation used to compute the yield to maturity on a twenty-year 15% coupon bond with a $2,000 face value that sells for $3,000. (3 marks) (0) Suppose you visit a financial adviser, and you are considering investing some of your wealth in one of two investment portfolios: stocks, or bonds. Your financial adviser provides you with the following information, which includes the probabilities of possible returns from each investment: \" Probabili m Probabili m -m- \"m -_ Which investment should you choose to maximize your expected return: stocks or bonds

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