Question 7

Imprudential, Inc., has an unfunded pension liability of $741 million that must be paid in 18 years. To assess the value of the firms stock, financial analysts want to discount this liability back to the present. If the relevant discount rate is 5.58 percent, what is the present value of this liability? (Enter answer in millions. E.g., 100 million goes in as '100'.)

Question 9

Assume a bronze sculpture sold in the year 2,010 at auction for a price of $10,424,744. Unfortunately for the previous owner, he had purchased it in year 1,996 at a price of $12,333,689. What was his annual rate of return on this sculpture? (Enter answer in percents, not in decimals.)

Question 11

Twenty years ago, you deposited $5,488 into an account. Fifteen years ago, you added an additional $9,110 to your account. You earned 5.88 percent, compounded annually, for the first 5 years and 8.5 percent, compounded annually, for the last 15 years. What is the value of your account today?