Question 1 (a) If Project A is completed today, its required payment is $90,000. However, investors decided to pay off the project only at the end of year 3. The required payment for the project will increase by 4% every year. With this in mind, the investors will deposit an investment amount to a bank account with an interest rate of 7% per year. The deposits will occur at the end of year 1, year 2, and year 3, respectively. Information about this project is shown in the figure below: A B 1 Required payment (present value) $90,000.00 2 Rate of increase per year if payment is not paid off 4.00% 3 Account interest rate per year 7.00% Year of pay off 6 Required payment 3 years later (using FV function) 8 Required deposit at end of each year (using PMT function) 9 10 11 Deposit at end Accumulated account 12 Year of year balance at end of year 13 14 N 15 Round your answers to two (2) decimal points. Calculate the project payment amount if it will only be paid three years later and the required deposit at the end of each year if investors were to settle this payment at the end of year 3. State the Excel formula for Cell B7 and Cell B8. Write down the Excel formulas for Cells B13:C15.(13) Suppose the investors now decided to increase the yearly deposit by a growth rate g of 3%: I Calculate the growth-adj usted rate and express it in percentage. I If the value of the growth rate (3%) is stated in Cell B5, state the Excel formula to calculate the annuity payment at the end of Year 1 (i.e., C(l +g)). (15 marks) A $1,000 zero-coupon bond makes payment of the face value at maturity. How would you value the price of a zero-coupon bond and decide if you should buy the zero-coupon bond? Is the bond selling at premium, at discount or at par? (3 marks) (C) ((1) Based on your understanding of bond, determine the type of loan that a bond most resembles and state your reasons. (3 marks) A 9-year, 12% coupon bond with face value $1,000 is priced at $856.85. If we know that the price of the same bond is $741.82 when the YTM is 18%, state the range of the YTM for this bond without using any calculation. Justify your answer. (4 marks)