Hi i need answer to the following questions. Please find the attached file. I need them in word with formulas and solutions.

4. Tom needs to arrange financing for its expansion program. One bank offers to lend the required $1,000,000 on a loan which requires interest to be paid at the end of each quarter. The quoted rate is 10 percent, and the principal must be repaid at the end of the year. A second lender offers 9 percent, daily compounding (365-day year), with interest and principal due at the end of the year. What is the difference in the effective annual rates (EFF%) charged by the two banks? 5. An annuity pays $1000 at the end of each of the next 8 years. What is the future value of this annuity at 6.5% interest rate 10 years from today? 6. Imagine Homer Simpson actually invested the $100,000 he earned providing Mr. Burns entertainment 6 years ago at 7% annual interest and starts investing an additional $2,500 a year today at the beginning of each year for 20 years at the same 7% annual rate. How much money will Homer have right after he has made his last payment? 7. You are evaluating an income generating property. Net rent is received at the end of each year. Last rent of $8,500 was just paid, and rent is expected to increase 7% each year. What is the present value of the estimated income stream over the first 5 years if the discount rate is 12%? 11. As a young graduate, you have plans on buying your dream car in three years. You believe the car will cost $50,000. You have two sources of money to reach your goal of $50,000. First, you will save money for the next three years in a money market fund that will return 8% annually. You plan on making $5,000 annual payments to this fund. You will make yearly investments at the BEGINNING of the year. The second source of money will be a car loan that you will take out on the day you buy the car. You anticipate the car dealer to offer you a 6% APR loan with monthly compounding for a term of 60 months. To buy your dream car, what monthly car payment will you anticipate? 13. Bond D is a 5 percent coupon bond. It makes semiannual payments, has a YTM of 7 percent, and have 10 years to maturity. What is the current yield and the capital gains yield ? 14. Suppose that today you buy a 6.2% annual coupon bond for $900. The bond has 10 years to maturity. What rate of return do you expect to earn on your investment? Two years from now, the YTM on your bond has increased by 1%, and you decide to sell. What is the holding period return on your investment? 17. The MerryWeather Firm wants to raise $10 million to expand its business. To accomplish this, it plans to sell 30-year, $1,000 face value zero-coupon bonds. The bonds will be priced to yield 6%. What is the minimum number of bonds it must sell to raise the $10 million it needs? 18. Majestic Homes' stock traditionally provides an 8% rate of return. The company just paid a $2 a year dividend which is expected to increase by 5% per year. If you are planning on buying 1,000 shares of this stock next year, how much should you expect to pay per share if the market rate of return for this type of security is 9% at the time of your purchase? 19. You are considering the purchase of a common stock that just paid a dividend of $2.00. You expect this stock to have a growth rate of 30 percent for the next 3 years, then to have a long-run normal growth rate of 10 percent thereafter. If you require a 15 percent rate of return, how much should you be willing to pay for this stock? 20. The dividend yield on Alpha's common stock is 7.2%. The company just paid a $2.10 dividend. The rumor is that the dividend will be $2.30 next year. The dividend growth rate is expected to remain constant at the current level. What is the required rate of return on Alpha's stock