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SECTION II You just graduated, and you plan to work for 10 years and then to leave for the Australian Outback bush country. You figure

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SECTION II You just graduated, and you plan to work for 10 years and then to leave for the Australian "Outback" bush country. You figure years and $2,000 a year for the next 5 years. These savings from now. In addition, your family has just given you a $$,000 graduation gi the gift now, and your future savings when they start, into an 1) you can save $1,000 a year for the first 5 cash flows will start one year ft. If you pu account which pays s ent compounded annually, what will your financial "stake" be when you leave tor Australia 10 years from now? Ifa 5-year regular annuity has a present value of $1,000, and if the interest rate is 10 percent, what is the amount of each annuity payment? 2) The current market price of Lundqvist Corporation's 10 percent, 10-year bonds is S1,297.58. A 10 percent coupon interest rate is paid semiannually, and the par value is equal to S1,000. What is the YTM (stated on a simple, or annual, basis) if the bonds mature 10 years from today? 3)

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