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SOLVE MANUALLY WITH FORMULAS PLEASE 4 Homework 1 There are 5 Questions. Each problem is worth 1 point. For all the problems, assume r=10% per

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SOLVE MANUALLY WITH FORMULAS PLEASE

4 Homework 1 There are 5 Questions. Each problem is worth 1 point. For all the problems, assume r=10% per year 1. What is the value today of $100 received 5 years from today. 2. What is the value of the following set of cash-flows 4 years from today? CFs in red and parenthesis means they are negative and $- means they are zero. Table 1: HW1.2 r Year Amount 10% Per-Year 0 1 2 3 4 5 ($450 $ - $ 123.00 $ 130.00 $ 140.00 $ 90.00 3. Suppose today is 2020, what is the value in 2020 of a security that will pay $100 every time there is a leap year next till (and including) 2034? Think of 2020 as t=0 and find out how many times the 100 will paid to you till 2034 4. Suppose there is a security with the following cash-flows, how much would you be willing to pay for this security in the year 6. Table 2: HW1.4 r Year Amount 10% 0 1 $100 $ - 2 3 4 5 $ 123.00 $ 130.00 $ 140.00 $ 90.00 5. Suppose you could go back in time. How much would you be willing to pay for the security in problem 4, 3 years ago

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