1. What is the effective yield of a 5% bond?
2. What is the effective yield of a 7.25% mortgage?
3. What rate would you need on a mortgage to make it equivalent to a bond that has a 6.5% rate
4. What is the PV of an annuity in arrears equal to $1,250,000 per year for 10 years given a 10% discount rate?
5. What is the FV of the above annuity same rates as in q4?
6. What is the IRR for the following cash flows?

yr 0 (10,000,000.00)

yr 1 1,000,000.00

yr 2 1,040,000.00

yr 3 1,081,600.00

yr 4 1,124,864.00

yr 5 12,419,858.56

7. Your cost of capital is 8%, how much would you be willing to spend on the investment above?