Question 1 Suppose that a mortgage of $200,000 is to be repaid over 20 years at an annual interest rate of 5%. Using the formula for calculating the present value of an annuity of n periods, find the fixed yearly payment to pay off the loan in 20 years. Show all the steps of your calculations to get full marks.Question 3 Suppose a Government of Canada zerocoupon band can be purchased for $3816.31 at [he and if 2005. At maturity, in seven years, the investor receives $6987.50. What is the yield to maturity on this zero-coupon band? [Type here] Question 4 Suppose you are given the following data about a T-bill: Face value $1,000,000, current price $979,644, days to maturity, 80. What is the effective annualized yield on this T-bill if held until maturity?[Type here] Question 6 What is the yield to maturity on a simple loan for $1 million that requires a repayment of $2 million in 5 year's time?Question 7 The demand curve and supply curve for one-year T-bills (with a face value of $1000) were estimated using the following equations: P: 1140-063\" P=700+BS where P is the price of bonds, B\" is the quantity demanded of bonds and B' is the quantity supplied of bonds. :1) Calculate the equilibrium price and quantity of bonds in this market. b) Using your answer to part (a) of this question, calculate the equilibrium interest rate in this market. Following a dramatic increase in the value of the stock market, the demand for bands decreased and this resulted in a parallel shift in the demand curve for bands, such as the price of bonds at all quantities decreased by $100. Assume that there was no change in the supply function for bonds. c) Calculate the equilibrium price and quantity of bonds in this market aer the above- mentioned decrease in the demand for bonds. d) Using your answer to part (c) of this question. calculate the new equilibrium interest rate in this market. e) Based on your answers to part (a), (b), (c) and (d) of this question, what relationship do you observe between the equilibrium price of bonds and the equilibrium interest rate? [Notes/Hints: Show all" steps of your calculations to getn'l' marks. Keep at least 4 digits aer the decimal point in each step of your calculations. Write down tire formula you are using rond' the answers to each part of this question] Question 8 Using the supply and demand for bonds framework, explain how an increase in expected inflation affects the equilibrium nominal interest rate. Draw a clearly labeled bond market diagram to support your explanations