Short Questions (30 points) 1. (10 points) Compute the modified duration for a two-year zero-coupon bond with principal $1,000 and current price of $694.44. 2. (10 points) What is the price of an apartment if the monthly rent is $3,500, the monthly discount rate is 0.6%, and the monthly growth rate is 0.3%. Assume that for a special offer the first three month of rent are free. 3. (10 points) You want to buy one share of a company that plans to pay dividends per share of $100 per year for 20 years beginning at the end of year 5. If the discount rate is 12%, what is the maximum price you should pay for this share