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The bond consists of a 10-year, 10% annuity of $60/year plus a $600 lump sum at t=10. Note: To receive full credit, show numbers /

The bond consists of a 10-year, 10% annuity of $60/year plus a $600 lump sum at t=10.

Note: To receive full credit, show numbers / formulas you used to get your answer(s).

a.(3 points) Find present value of annuity.

pv pm fv Annual rate periods compounding mode

b.(3 points) Find present value of maturity.

pv pm fv Annual rate periods compounding mode

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