V. BOND VALUATIHN 1. Peter needs to burrow to purchase real estate in Breeklyn. The ban]: oE'ers him a 4% p.a. interest rate on a Ellgaze: mortgage with annual pay ments of Slivil. Determine the value ni' Peter's loan. 2. Today, Beth is offered a choice between a perpetuity with an annual payment of $1 and a bend that pays $112,350 two years from today. 5: \"nch of these two options represents the largest present value if the market annual interest rate is 6% pa. Explain your