I. You plan to borrow $35,000 at an 8% semiannual interest rate. The terms require you to amortize the loan with 4 equal end- of-year payments. a) Calculate the amount of periodic payment you would be paying every year? Use Financial Calculator b) Set-up an amortization schedule. (4 marks) I. Treasury bonds with 7-year maturity are yielding 7.75% per year. A corporate bond with the same maturity is yielding 12% per year. The real risk-free rate is 4.5% and the average inflation premium is 2.65%. The maturity risk premium is estimated to be 0.1* (t-1) %, where t=number of years to maturity. The default risk premium is 2.5%. Calculate the liquidity risk premium on the corporate bonds? (4 marks) I. Use Financial Calculator: Your grandmother left you $100,000 in a trust fund that pays 8.5% interest. You must spend the money on your college education, and you must withdraw the money in 3 equal installments, beginning immediately. How much could you withdraw at the beginning of each year and end up with zero in the account? (First make a time-line indicating inflows and outflows and then calculate for the asked output). (4 marks)