1. Multiple-Choice Question (5 Points): Suppose someone is going to borrow money from you. If the annualized interest rate is 20%, please calculate what is the actual compound annual interest rate when you compound every day ( ) A. 25.36% B. 26.18% C. 22.13% D. 20.87% 2. Multiple-Choice Question (5 Points): Suppose a company has $1 billion of cash, $4 billion of government bonds, and $4 billion of collateralized debt obligations (CDOs). It also has $7 billion of liabilities. So what is the equity of this companly: ( ) A. $5 billion B. $2 billion C. $4 billion D. $1 billion 3. Multiple-Choice Question (5 Points): Suppose a company has $2 billion of cash, $3 billion of government bonds, $2 billion of corporate bonds, and $4 billion of collateralized debt obligations (CDOs). It also has $8 billion of liabilities. Assume this company has 500 million shares, what is the book value per share of this company ( ) A. $5.00 per share B. $8.00 per share C. $6.00 per share D. $2.00 per share