Investment X offers to pay you $4,700 per year for 9 years, whereas Investment Y offers to pay you $6,800 per year for 5 years.

If the discount rate is 5 percent, what is the present value of these cash flows?

Investment x ?

Investement y?

7.If the discount rate is 15 percent, what is the present value of these cash flows?(Do not round intermediate calculations and round your answers to 2

decimal places, e.g., 32.16.) Investment x? Y?

8.

An investment offers $6,800 per year for 20 years, with the first payment occurring one year from now.

If the required return is 7 percent, what is the value of the investment? Present Value?

What would the value be if the payments occurred for 45 years?(Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.) (Present Value?

What would the value be if the payments occurred for 70 years?(Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16. Present Value?

What would the value be if the payments occurred forever?(Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.) Present Value?

8.

Suppose the real rate is 3.5 percent and the inflation rate is 5.1 percent.

What rate would you expect to see on a Treasury bill?

Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of 1,000, 10 years to maturity, and a coupon rate of 6.4 percent paid annually.

If the yield to maturity is 7.5 percent, what is the current price of the bond?(Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Find the EAR in each of the following cases(Use 365 days a year. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.):

Stated Rate (APR)		Number of Times Compounded		Effective Rate (EAR)
	9.6	%			Quarterly			%
	18.6				Monthly
	14.6				Daily
	11.6				Infinite