Step 4 2. You have your choice of two investment accounts. Investment A is a 13-year annuity that features end-of-month $1,650 payments and has an interest rate of 7.8 percent compounded monthly. Investment B is a 7.3 percent continuously compounded lump sum investment, also good for 13 years. How much money would you need to invest in B today for it to be worth as much as Investment A 13 years from now? (15 points) 3. Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of 2,500, 10 years to maturity, and a coupon rate of 7.2 percent paid annually. If the yield to maturity is 8.3 percent, what is the current price of the bond? (15 points) Metallica Bearings, Inc., is a young company. No dividends will be paid on the stock over the nine years, because the firm needs to plow back its earnings to fuel growth. The company pay a dividend of $12 per share in 10 years and will increase the dividend by 5 percent per "hereafter. If the required return on this stock is 14 percent, what is the fair share price? (1