D E F G B 7 Question 1 8 Calculate the discount factors given the following term structure of interest rate: 9 10 Period Spot Rate DF 11 1 1.875% 12 2 2.250% 13 3 2.750% 14 4. 3.125% 15 5 3.875% 16 17 18 Question 2 19 Calculate the NPV and IRR of the following series of cash flows. Assume interest rates are the same as in question #1 above, 20 21 Period Cash Flow NPV IRR 22 0 $ (1,500,000.0) 23 1 $ 255,000.0 24 2 $ 321,000.0 25 3 $ 622,000.0 26 4. $ 375,000.0 27 5 $ 162,500.0 28 29 30. Question 3 31. The relationship between stock prices and discount rates is generally direct. True of False? 32 PLEASE WRITE THE ANSWER- NO Numbers BAType Answer here 34 35