Present Discounted Value is based on the notion that a dollar paid in the future is less valuable than a dollar paid today. The present value of a loan in which $5000 is to be paid out a year from today with the interest rate equal to 4% is $(Round your response to the neareast two decimal place) If a loan is paid after two years, and the amount $9000 is to be paid then with a corresponding 1% interest rate, the present value of the loan is $(Round your response to the neareast two decimal place) , 161 15 ***** Refer to the diagram to the right where a nominal interest rate (the 6-month annualized Treasury rate) and the rate of inflation are plotted. In which of the three decades (1970-79, 1980-89, 1990-99) is the inflation rate the most stable? The inflation rate is most stable during the In which of the three decades does the economy experience disinflation? Disinflation is experienced during the In which of the three decades is the real interest rate, on average, the highest? On average, the real interest rate is highest during this 13 12 11- 10- We Nominal Interest Rate, Inflation Rate (%) 1 1970 1975 1980 1985 1990 1995 Year 2000 2005 How much would you pay for a perpetual bond that pays an annual coupon of $80 per year and yields on competing instruments are 10%? You would pay $(Round your response to the nearest ponny.) Ifc competing yields are expected to change to 10%, what is the current yield on this same bond assuming that you paid $800? The current yield is %. (Round your response to the nearest integer.) If you sell this bond in exactly one year, having paid $800, and received exactly one coupon payment, what is your total return if competing yields are 10%? Your total return is % (Round your response to two decimal places.) If a lender makes a simple loan of $500 for 2 years and charges 7%, then the amount that the lender receive at maturity is $ (Round your response to the nearest two decimal place) If a lender makes a simple loan of S2000 for one year and charges $70 interest, then the simple interest rate on that loan is %. (Round your response to the nearest whole number) If a borrower must repay $106.50 one year from today in order to receive a simple loan of $100 today, the simple interest on this loan is O A. 6.5% OB. 5.0% c. 6.0% D. 65%