MI ilil Normal No Spacing Heading 1 Heading 2 Title FINA 3010 - 208 HW1 (Due on Oct 8) Please show your effort, do not only give a number. Upload doc, PDF or any other format files that you prefer through BB link. 1. Efects of afferent compounding periods on future values of $1,000 invested at an 15% nominal interest rate Initial Amount Efective annual rate PV at end of 1 year $1,000 $1,000 $1,000 $1,000 $1,000 Compounding periods Annually Semiannually Quarterly Monthly Daily (365 days) I 2. To illustrate with the simplest case of annual payments, suppose you borrow $24,000 a 10 percent compound annual interest to be repaid over the next 6 years. Equal installment payments are required at the end of each year. Please determine the annual payment, and amortization schedule. 3. On Jan 1", 2000, the real risk-free rate is 2% and is expected to be constant for next 20 years. Inflation is expected to be 7% next year, 3% the following year, and thercatter. The maturity risk premium is estimated to be 0.2-1) 96 and up to 1% number of years to maturity) 1) Please estimate the term structure of US Breasury 2) Draw the yield curve on Jan 1, 2000 and what's the expected yielden Corporate bond? (show the trend and position MacBook Air 000 COD F4 13 F5 F7 F8 FVO