Please help me with the attached questions . I want to know the work for every question and the calculator functions in detail step by step. Thank you.

regards

Kokila

1. Given your ridiculous work load between job and school, you have begun to think of saving for retirement. You forecast you will work for another 35 years (ugh!) and would like to accumulate $10,000,000 by the end of that time. You plan to invest in stocks which you estimate will return a consistent 10% per year. Required a. If you fund your retirement plan with one payment today, how much should that payment be? b. If you fund your retirement plan by making equal payments at the end of each of the 35 years, how much should each payment be? c. If you fund your retirement plan by doing nothing for the first 10 years and then making equal payments at the end of each of the remaining 25 years, how much should each payment be? d. If you fund your retirement plan by making equal payments at the end of the next 25 years and then no further payments for the remaining 10 years, how much should each payment be? 2. After you retire, you expect to live for another 25 years. Assume you are successful in accumulating the $10,000,000 (from problem 1) on your retirement date. You now decide to move your investments into something safer: a bank account paying \"5%, compounded monthly.\" Required a. What effective annual rate (EAR) is the bank paying? b. You wish to withdraw a constant amount at the beginning of each month during your retirement years. How large can each withdrawal be to just exhaust your account at the end of the 25 years? c. If you decided to live high on the hog and withdraw $100,000 at the beginning of each month, after how many months would you run out of money? d. Now suppose that instead of putting all your money in a bank account, you elect to invest some of in shares of the common stock of a company that pays annual dividends. The consensus forecast of analysts is that the next dividend this stock will pay will be $2.50 in one year, and that the dividend will grow at a rate of 7% for the foreseeable future. If you require a 14% rate of return on this investment, how much should you pay for each share? 3. The U.S. Treasury website reports that U.S. Treasury bonds are yielding the following rates: Maturity 1 year 2 years 3 years Yield 0.80% 1.12% 1.38% Required: a. If the pure rate of interest is 0.45% and U.S. Treasury bonds are risk free, how would the Fisher model explain the one-year rate (in both words and numbers). b. Is this yield curve normal or inverted? Why do you say this? c. What rate are investors forecasting for a one-year maturity U.S. Treasury bond two years from now? 4. As you scan your Bloomberg computer monitor here in New York you notice the following foreign exchange quotes between the US dollar and the euro: Bank 1 Bank 2 Bank 3 Bank 4 Direct 1.0567 1.0567 1.0582 1.0567 Reciprocal 0.9463 0.9463 0.9450 0.9463 You also see that all four banks are quoting a rate of USD1.2481 per British pound sterling. Required a. Why is Bank 3 quoting a rate different from the other banks? b. Show how you could perform geographic arbitrage in this situation. What is the profit per dollar from your arbitrage? c. What is the equilibrium cross rate between the euro and the pound