Please answer the following questions completely by noting that some problem-solving questions contain multiple parts. Please also show your work when relevant.

1.What is the present value of a security that will pay you $4,200 in 10 years assuming an annual interest rate of 4.5%?

2.On the day your child is born, you open a college savings fund for him/her with an initial deposit of $5,000. You want this account to be able to cover his/her entire tuition for 4 years of college. In 18 years, when your child is beginning to attend college, 4 years of college tuition will cost $360,000. The bank is giving you an interest rate of 2.5% compounded annually. How much will you need to deposit each month in the college savings account in order to have saved enough money for 4 years of his/her college tuition? Assume that you will make 1 payment equal to the entire amount of tuition in 18 years.

3.(a) Calculate the value of a bond with a 6.75% semiannual coupon and a market interest rate of 8% that matures in 15 years.

(b) If the market rate for the bond in Question 1(a) increased to 10.5% after 2 years, what is the percentage change in the bond value over that time?

4.What would you expect to pay for a 12-year bond with a 5.5% semiannual coupon and yield to maturity of 4.0%? If this bond were callable in 10 years at a price of $1,060, what would the yield to call be?

5.The current price of Cyberdyne stock is $42.50 per share. If Cyberdyne's last dividend was $3.00 per share, and given that stockholders' required rate of return is 9%, what is the expected growth rate of Cyberdyne dividends based on the Discounted Dividend Model for constant growth?