I. Present discounted value 1. \""hat is the present discounted value of an investment project that provides. retinas of 55m} in year 1; $400 in year 2; $3119 in year 3; 3200 in year 4; and $1M} in year 5 if the discoum rate is 5%: {a} 515M; {1:} 5100; (c) L299; {d} 1,341; 2. \"That is the present discounted value of an anmlity that pays 525.Dll a year for 15 years ifthe discount rate is 7.5%: {a} ENJTB; {h} 5375;000; {c} 1H,932;{d} 312,313; ll. Expectations hypothesis A recent survey revealed that the market expects the 1year interest rate to be 5553 one year from new; dawn iron: it's current level of 5'5\"}. lithe-Le etpectatinns are correct: 3. E'shat sheuld be the current yield on a 2year bend; (a) 5.5%; [:an 591; {c} 5%; [d] 7%; 4. \"hat is the expected capital gain {'] or less {-) on n Slllll dollar face value 2-year bend: {a} 2.Dll; {h} ll.5ll; {c} 5.00; [d] (LED; 5. \"hat is the holding period yield on the two-year bond assuming it has a face value of 5100: {a} 2%; {b} 5%; [c] 6%; (d) 991; III. Yield to Llatirry 6. Using Excel, calculate the yield. to maturity of a 10year houdwith an 59". animal coupon and a face value of lEIS that is currently selling n 1113.50: {a} 5.53%; {it} 6%; [c] l3j9i. {d} 3%; _ C+ Sow make use of the linear apprttzima'tion to the yield to maturity: m T. \"'hat is the numerator of this expression: {a} 4.22; (b) 103.5; {c} TED; {d} 5.65; 8. \"'hat is the dennntinator of thk expression: (a) 103.5; {It} 101.?5; {c} Sill}; (d) 10; 9. \"hat is the approximate yield. to maturity. (a) 5.5555; {h} 3.25%.; {c} 5%; {d} 10%