Please answer each question step by step.

Chapter 4 Exercise Problems 1. A bank offers to lend you $1,000 if you sign a note to pay $1,610.50 at the end of five years. What rate of interest would the bank be charging you? 2. Last year, ABC Inc.s sales were $5,000,000. Sales were $2,500,000 five years earlier (than last year). At what rate had sales been growing?

3. How much do you have to deposit into a bank account in order to have $1,000 in the account in 10 years, assuming an interest rate of 12%? 4. Firm XYZ just paid a $2.00 dividend on each share of its common stock. The dividends are expected to grow at a 12 percent rate for the next three years and level off to 5 percent thereafter. Estimate the firms per-share-dividend for EACH of the next four years. Chapter 5 Exercise Problem You have just taken out an installment loan of $1,000. Assume that the loan will be repaid in three equal annual payments with the first payment due one year from today. Work out the amortization schedule of the loan, given 6% as the interest rate charged on the loan balance that is outstanding at each point in time.

Chapter 6 Exercise Problem 1. The Apollo Inc.s bonds have four years remaining to maturity. Interest is paid annually; the bonds have a $1,000 par value; the coupon rate is 9 percent. What is the yield to maturity at a current market price of $828.70? 2. Simmons, Inc. wants to issue sixty 10-year, $1,000 face value zero-coupon bonds. If investors require a rate of return of 12% for the bonds, how much will the firm receive (ignoring issuance costs) when the bonds are first sold?