You intend to endow a scholarship that pays $7,000 every 6 months, starting 6 months from now. If the appropriate discount rate is 6% per 6-month period, how much money will you have to donate today to endow the scholarship? You will need to donate $ . (Round to the nearest dollar) The current zero-coupon yield curve for risk-free bonds is as follows: 2 5.50% 3 5.75% 5 6.05% 5.95% Maturity (years) 1 YTM 5.00% What is the risk-free interest rate for a five-year maturity? The risk-free interest rate for a five-year maturity is L%, (Round to two decimal places.) The local electronics store is offering a promotion "1-year; same as cash," meaning that you can buy a TV now, and wait a year to pay (with no interest). So, if you take home a $1,000 TV today, you wil owe them $1,000 in one year. If your bank is offering 4% interest, what is the true cost of the TV to you today? The true cost of the TV to you today is $1(Round to the nearest cent.) + What is the present value of the following set of cash flows, discounted at 15% per year? Year 1 2 CF $100 - $100 3 $200 4 - $200 The present value of the cash flow stream is $ (Round to the nearest cent.) The British government has a consol bond outstanding paying 100 per year forever. Assume the current interest rate is 4% per year, a. What is the value of the bond immediately after a payment is made? b. What is the value of the bond immediately before a payment is made? a. What is the value of the bond immediately after a payment is made? The value of the bond immediately after a payment is made is 1). (Round to the nearest pound.) b. What is the value of the bond immediately before a payment is made? The value of the bond immediately before a payment is made is I. (Round to the nearest pound.) A friend asks to borrow $55 from you and in return will pay you $58 in one year. If your bank is offering a 6.0% interest rate on deposits and loans: a. How much would you have in one year if you deposited the $55 instead? b. How much money could you borrow today if you pay the bank $58 in one year? c. Should you loan the money to your friend or deposit it in the bank? a. How much would you have in one year if you deposited the $55 instead? If you deposit the money in the bank today you will have $ in one year. (Round to the nearest cent.) b. How much money could you borrow today if you pay the bank $58 in one year? You will be able to borrow $ today. (Round to the nearest cent) c. Should you loan the money to your friend or deposit it in the bank? (Select from the drop-down menu.) From a financial perspective, you should as it will result in more money for you at the end of the year lend the money to your friend deposit the money in the bank Enter your answer in each of the answer boxes