1.. A company plans on taking out real estate loan of $10 Million on its distribution center. The company will make even payments at the end of each year over ten years. At the end of ten years, the company will have paid back the loan and they will have made ten payments.The interest rate equals 4.5%. What is the annual payment amount?

2..A $1,000 unit bond has a coupon rate of 4% (interest paid yearly at $40 per year). The bond has five years left until it matures. The current market interest rate equals 5%.

Compute the bond's market value today.

3.. You can use the same fact situation as problem one. The only item that has change is current market interest rate equals 3%. Compute the bond's market value today.

4. A stock pays a $2 dividend in year zero. Investors think the dividends will grow at 3% rate per year.This investor wishes to earn 15% on any stock investments (required return).Compute the common stock's current market value.