Can someone please answer these questions and show your work and formula please.

Lab 4 Assignment 1. Suppose we invest $1000 in each of the following bond options: a) 5 year bond earning 4% interest compounded quarterly (4 times per year). b) 5 year bond earning 0.15% compounded monthly (12 times per year). c) 5 year bond earning 0.045% compounded daily (365 times per year). Calculate the future value of the bond each year as interest compounds for a total of 10 years. Create a single line chart to show how these investments grow over the 10 year period. (6 points for correct calculations in parts (a), (b) and (c), 2 points for the correct chart), (Question 1 hint - use a similar process to that demonstrated in first part of the lab exercises) 2. You are given the option between 2 lottery prizes: $1,000,000 to be received in 10 years from today. $2,000,000 to be received in 20 years from today. a) Assuming a discount rate (roughly) equivalent to the interest rate on a savings account (1% - nowadays that a pretty good one), which lottery prize is worth more to you today? b) Now, assume that a risk premium is added to the discount rate and now you estimate a discount rate of 5% should be used. Which lottery prize should you pick now? (Question 2 hint: discount the prizes to present value). (2 points per correct part (a) and (b), 4 total. Show calculations.) 3. Suppose you are expecting to receive $650,000 in 40 years when you sell your house to retire. Calculate the present value of this income using the following discount rates: 0.5%, 1%, 1.5%, 3%, 6%, 9% and 12%. Then prepare a line chart to show how the present value changes over this range of discount rates. (4 points total, 2 for correct calculations and 2 for the correct chart). Lab 4 Assignment 1. Suppose we invest $1000 in each of the following bond options: a) 5 year bond earning 4% interest compounded quarterly (4 times per year). b) 5 year bond earning 0.15% compounded monthly (12 times per year). c) 5 year bond earning 0.045% compounded daily (365 times per year). Calculate the future value of the bond each year as interest compounds for a total of 10 years. Create a single line chart to show how these investments grow over the 10 year period. (6 points for correct calculations in parts (a), (b) and (c), 2 points for the correct chart), (Question 1 hint - use a similar process to that demonstrated in first part of the lab exercises) 2. You are given the option between 2 lottery prizes: $1,000,000 to be received in 10 years from today. $2,000,000 to be received in 20 years from today. a) Assuming a discount rate (roughly) equivalent to the interest rate on a savings account (1% - nowadays that a pretty good one), which lottery prize is worth more to you today? b) Now, assume that a risk premium is added to the discount rate and now you estimate a discount rate of 5% should be used. Which lottery prize should you pick now? (Question 2 hint: discount the prizes to present value). (2 points per correct part (a) and (b), 4 total. Show calculations.) 3. Suppose you are expecting to receive $650,000 in 40 years when you sell your house to retire. Calculate the present value of this income using the following discount rates: 0.5%, 1%, 1.5%, 3%, 6%, 9% and 12%. Then prepare a line chart to show how the present value changes over this range of discount rates. (4 points total, 2 for correct calculations and 2 for the correct chart)