QUESTION 7 You are offered a perpetuity that costs $40,000 and will pay you $3,600 a year starting at the end of the year. If the required return does not change, how much would you be willing to pay if this was a 25 year annual payment, ordinary annuity? O $35,361.29 $40,000 $34,159.28 QUESTION 8 What is the present Value of $500 to be paid in 4 years if the interest rate is 7967 $500.00 $407.19 $381.45 $396.05 QUESTION 9 You are offered a $3,000,000 contract to be paid to you over 6 years at $500,000 per year. The first payment will be made at the end of the year. If the current market interest rate is 3.5%, what is the contract really worth to you? $2,500,000.00 $3,275,076.09 $2,664,276.51 $3,000,000.00 QUESTION 10 What is the yield to maturity on a $1,000 bond, 6% coupon, 8 years to maturity if the current price is $1,098.94? 04.0096 4.5096 5.0096 5.5096