Problem 1: Contract 1: You will receive $100,000 in 6 years and you will continue lo receive money every 2 years until year 30 but the amount is growing at a constant rate of 3% each period. The interest rate is 8% APR quarterly compounded. What is the present value? Contract 2: A bank offers to pay $90.000 today and it will onlinue to pay every 3 years forever, but the amumunl is growing at a constunt rate of 2% every three years (So, the first payment is al yeur ... and the payment will contime every two years growing at a rate of 2% per two years and so forever) The interest rate is 129 semi-annually compounded. What is the present value? Which contract is better? Question: Usually, do firms issue stocks and bonds by themselves? Why? Explain