"Please Read Directions Carefully:" "And no plagiarism please." "Doon Excel with formulas.

The Calculations must be done on Excel withactual calculations in the cells.

Chapter 2 problems 1, 2, 18, 19, 26. Do on Excel with formulas. I need to see actual calculations in the cells. 1. A particular security's equilibrium rate of return is 8 percent. For all securities, the inflation risk premium is 1.75 percent and the real interest rate is 3.5 percent. The security's liquidity risk pre mium is .25 percent and maturity risk premium is .85 percent. The security has no special covenants. Calculate the security's default risk premium. (LG 26) 2.You are considering an investment in 30year bonds issued by Moore Corporation. The bonds have no special covenants. The Wall Street Journal reports that oneyear Tbills are currently earning 3.25 percent. Your broker has determined the following information about economic activity and Moore Corporation bonds: a. What is the inflation premium? b. What is the fair interest rate on Moore Corporation 30 year bonds? 18. Calculate the present value of $5,000 received five years from today if your investments pay (LG 29) a. 6 percent compounded annually b. 8 percent compounded annually c. 10 percent compounded annually d. 10 percent compounded semiannually e. 10 percent compounded quarterly What do your answers to these questions tell you about the rela tion between present values and interest rates and between present values and the number of compounding periods per year? 19. Calculate the future value in five years of $5,000 received to day if your investments pay a. 6 percent compounded annually b. 8 percent compounded annually c. 10 percent compounded annually d. 10 percent compounded semiannually e. 10 percent compounded quarterly 26. Compute the future values of the following first assuming that payments are made on the last day of the period and then assum ing payments are made on the first day of the period