The bond consists of a 10-year, 10% annuity of $50/year plus a $500 lump sum at t=10. Note: To receive full credit, show numbers/ formulas you used to get your answer(s). 1. (3 points) Find present value of annuity. 2. (3 points) Find present value of maturity 3.3 points) Find value of bond. 4.3 points) What would happen if expected inflation rose by 3%, causing r=13%? Find value of bond. 5. (3 points) What would happen if inflation fell and r declined to 7%? Find value of bond. 6. (3 points) What is the relationship between t and the value of bond