Assume that you are nearing graduation and have applied for a job with a local bank. The banks evaluation process requires you to take an examination that covers several financial analysis techniques. Use the following information for Questions 1 through 2:

1. What is the present value of the following uneven cash flow stream 50, 100, 75, and 50 at the end of Years 0 through 3? The appropriate interest rate is 10%, compounded annually.

2. Suppose that on January 1 you deposit 100 in an account that pays a nominal (or quoted) interest rate of %, with interest added (compounded) daily. How much will you have in your account on October 1, or 9 months later?

Use the following information for Questions 3 and 4: A firm issues a 10-year, 1,000 par value bond with a...