QUESTION 4. I Answer briefly the following questions:

a) Write the formula of the Price-Earnings ratio and explain how a result of 11 should be interpreted

b) Write the equation for the PV of 200.000$ be received two years later when the market interest rate is forecast as 17%.

c) Define the yield to maturity of a 4 -year maturity bond whose face value will be repaid at the end of the maturity .

d) Define the intrinsic value of a 2-year maturity bond whose face value will be repaid in equal installments .

Note : Please write down the formula for each problem and substitute the values .