I. What is the future value of $400 saved at i-7.86%, compounded annually in 1 year? 2. what is the future value of $400 saved at 1-786%, compounded annually in 2 years? 3, what is the future value of $400 saved at i 7.86%, cormpounded semi-annually in 2 years? 4. What is the future value of $400 saved at i: 7.86%, compounded quarterly in 2 years? 5. Suppose you save $18,000 per year at an interest rate of i much will you have after 35 years? 5.21% compounded once per year. How 6. A risk-free bond will pay you $1000 in 1 year. The annual discount rate is i-3.69% cormpounded annually. What is the bond's present value? 7. A risk-free bond will pay you $1000 in 2 years and nothing in between. The annual discount rate is i 9596 cormpounded annually, what is the bond's present value? 8. You buy a 30 year zero coupon bond which will pay you $1000 in 30 years at an annual yield ofi 6% compounded once per year. A few minutes later the annual yield rises to i 7% compounded once per year. What is the percent change in the value of the bond? (Hint: the answer should be negative.) 9. You buy a 30 year zero coupon bond which will pay you $1000 in 30 years at an annual yield of 14% compounded once per year, 25 years later it will be a 5 year zero coupon bond. Suppose the interest rate on this bond will be 14%, what will the price of this bond be in 25 years? 10. You are offered an annuity that will pay you $200,000 once per year, at the end of the year, for 25 years. The first payment will arrive one year from now. The last payment will arrive twenty five yeans from now. Suppose your annual discount rate is i-5.25%, how much are you willing to pay for this annuity? (hint: this is the same as the present value of an annuity.) 11. You would like to develop an office building. Your analysts forecast that it will cost you $1,000,000 immediately (time 0), and it will cost you $500,000 in one year (time 1). They forecast you can sell the building for $2.400,000 in two years (time 2). If your discount rate is 25%, what is the net present value of this investment