Please show all works :)

5. You have an asset that will pay you a first payment of $10 in 2 years, then every year for the next 100 years. Assuming a cost of capital of 10%, what is the approximate present value of these 101 payments? a. $99.99 b. $90.90 c. $1,515,767 d. $627.67

7. Consider an asset that will pay you $10 today and every year for the next 100 years. Assume a constant cost of capital of 10%. Suppose you receive the asset today (right before the first payment), but will only pay for it 10 years later. That is, you will pay the appropriate future value of this asset 10 years from now. How much would you be willing to pay for the asset in 10 years? a. $99.99 b. $285.29 c. $159.37 d. $259.35 e. none of the above

8. Assume that your savings account will return a constant 10%. You will deposit $1000 today and plan to increase the size of the deposit by 5% each year. Thus the deposit in one year will be $1050. Immediately after making the final deposit 10 years from now, how much will be in your savings account? a. $7,439.81 b. $22,855.55 c. $21,890.70 d. $19,296.96 e. none of the above

9. Assume that your savings account will return a constant 10% forever. You will deposit $1000 today. Suppose you and your descendants plan to continue to increase the size of the deposit by 10% each year forever. What is the present value of such a savings program? a. $0 b. Infinity c. $1000 d. Cant divide by zero so the answer is undefined. e. None of the above

10. What is the internal rate of return on a 10-year annuity paying 10 dollars each year with a present value equal to $73.60? a. 5% b. 5.5% c. 6% d. We cannot answer the question as we do not have access to Goal Seek, so there is no way we can infer the answer! e. None of the above

11. Starting exactly 11 years from now, you will receive a perpetual annual cash flow equal to $100. Assume that the discount rate from year 10 onwards will remain constant at 10%. Suppose the price of a 10 year zero coupon bond with face value of 10,000 is equal to $5,000 today. What is the present value of this perpetual annual cash flow today? a. $5 b. $500 c. $50 d. There is not enough information to answer the question. e. None of the above

20. Consider a bond with face value equal to $250,000 with a coupon rate of 8% paying two coupons per year. There are exactly eight years remaining and the yield to maturity is 8.5%. What is the price of this bond immediately before the current coupon is paid? a. $242,849.81 b. $257,282.68 c. $242,951.02 d. $252,849.81 e. none of the above

Questions 21 and 22: A bond paying annual coupons of 10% with exactly 2 years remaining until maturity has a face value of $100 and currently trades at a yield to maturity of 4.9307%. Two year zero coupon bonds currently trade at a yield of 5%. All bonds are risk-free.

21. What no-arbitrage price for one year zero coupon bond with face value of $100? a. $109.43 b. $99.77 c. $96.62 d. $100 e. none of the above

23. Imagine a portfolio of 10 zero coupon bonds, each with a face value of 1000, maturing in years 1 through 10. Note that the portfolio generates a cash flow equal to that of 10-year annuity paying 1000 dollars each year (starting in one year). What is the yield to maturity on the above portfolio of zero coupon bonds if the present value is approximately equal to $7360? a. 6.5% b. 6% c. 5.5% d. I cannot answer the question as I do not have access to Goal Seek, so there is no way to infer the answer from the information given.