Note: According to Chegg policy, Only first 4 questions need to solve. I post only 4 questions. Please solve all 4 questions. Thank you.

Task 7 You work for a pharmaceutical company that has developer a new on.g. The patent on the drug will last 17 years. You expect that the drug's profits will be $2 milion in its first year and that this amount will grow at a rate of 5% per year for the next 17 years. Once the patet expires, other pharmaceutical companies will be able to produce the same drug and competition will likely drive profits to zero. What is the present value of the new drug it the interest rate is 10% per year? Answer: The present value is $ .... million Task 8 You are thinking of purchasing a house. The house costs $250,000. You have $50,000 in cash that you can use as a down payment on the house, but you need to borca the rest of the purchase price. The bank la offering a 30-year mortgage that requires Annual payments and has an interest rate of 7% per year. What will your animal paymenil Leif you sign up for this mortuge? Answer: The annual payment is $ Task 9 Your bank account pays interest with an EAR of 4%. What is the APR quote for this account based on semiarnual campaunding? What is the APR with monthly compounding? Answer: With semiannual payments, the APR is... % Task 16 Grummon Corporation has issued zrc-coupon corporate txants with a five year maturity (bassume $100 face value band). Investors believe there is a 40% chance that Grummon will default on these bonds. If Grummon does default, investors expect to receive only 40 oants per dolar they are owed. If investors require a 6% expected return on their investment in these bonds, what will be the price and yield to maturity on these bonds? Note: Assume annual compounding What will be the price of these bonds? Answer: The price of these bonds is $