Problem 1: Single- and Multiple-Choice Questions (22 points)…

Problem 1: Single- and Multiple-Choice Questions (22 points)   d) Single-choice question: Assume you receive an annual risk-free cash flow of $150 that starts in two years (t=2) and that continues up to infinity, i.e., the cash flow is a constant perpetuity. Today you are the time t=0. You will receive the first cash flow in t=2. The risk-free rate is 4% for all maturities. What is today’s (t=0) present value of the stream of future cash flows? (3 points)

Problem 2 – Excel: Bond valuation (13 points) Download the…

Problem 2 – Excel: Bond valuation (13 points) Download the attached Excel file “Problem_2_Template.xslx” and answer the questions stated in the Excel file: Problem_2_Template.xlsx When you have completed your solutions, please upload the Excel file with your solutions to your e-exam using the name “StudentID_Problem_2.xslx” (e.g., “123456789_Problem_2.xlsx”). When you want to upload an updated version of your solutions, please add a version tag (e.g., “_v2”) at the end of the file name (e.g., “123456789_Problem_2_v2.xlsx”). This problem consists of four parts. Parts a), b) , c), and d) yield 3, 4, 3 , and 3 points, respectively.