Suppose you are buying a new car for $35,000. The car dealer is offering you two options: Buy or 4-year lease. You can lease the car for $800 monthly (paid at end of the month). Your bank pays 3% APR on savings deposits If you decide to lease (instead of buy), how much money will you lose, in today's dollars ? Enter your answer in the following format: 1234.56 Hint: Answer is between 1051.52 and 1245.82 Suppose you are dreaming about buying a $1 million home and a bank is offering a loan on the full purchase price. Mortgage loan payment is due at end of the month. Bank is offering a 30-year mortgage at 3.5% APR What will be your monthly mortgage payment? Enter your answer in the following format: 1234.56 Hint: Answer is between 4086.31 and 4984.4 WSJ newspaper reports the risk-free interest rates for the next four years as follows: 1-year: 0.13%; 2-year: 0.48%; 3-year: 0.79%; 4-year: 0.9%. Using expectations theory and geometric averages, What is the forecasted 1-year risk-free rate 2 years from now? Enter your answer in the following format: 0.1234 Hint: Answer is between 0.0124 and 0.0155 Suppose the US government is issuing a $1,000 PAR value coupon bond today. This bond will mature in 3 years from today. This Bond's annual coupon rate is 11%. Coupons are paid 1 time(s) in a year. The investors expect 4% annual return on this bond. What is the present value of this Bond? Enter your answer in the following format: 1234.56 Hint: Answer is between 1098.72 and 1313.68 Jackson bought a 10-year, $1,000 PAR coupon bond today. Annual coupon rate is 11% Coupons are paid 1 times in a year Jackson was hoping for a yleld to maturity (YTM) of 10% on this Bond Few hours after purchasing this bond, a very bad economic event occurred and all interest rates went down by 1% How much is Jackson's profit today? Enter your answer in the following format: 12.34 Hint: Compute the Bond PV before and after interest rate change, and take the difference. Answer is between 58.88 and 73.6