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Economics 121 Asset Pricing Exercise What is the present value of a simple loan that requires you to pay Php 20,000 after 5 years if the interest rate per annum is 15%? What is the present value of a fixed payment loan that requires you to pay Php 5,000 per year for 5 years if the interest rate per annum is 10%? What is the present value of a coupon bond that pays Php 2000 per year, and at the maturity date (after 4 years) pays out the face value of Php 80,000 suppose the interest rate is Php 10% per annum? What is the present value of a discount bond that pays you Php 15,000 after 3 years if the interest rate is 8%? If the interest rate is 10% per annum, what is the present value of a security that pays you Php 1,100 at the end of the year, Php 1,210 the year after, Php 1,331 the year after that? If the security in #5 sold for Php 3,500, is the yield to maturity greater or less than 10%? Why? What is the yield to maturity on a Php 1,000 face-value discount bond maturing in one year that sells for Php 800? What is the yield to maturity on a simple loan amounting Php 1 million that requires a repayment of Php 2 million in 5 years time? If you take a fixed payment loan worth Php 5,000 which you have to pay on a quarterly basis for 2 years, and the annual interest rate is 10%, how much is your quarterly amortization?

For problems which were manually calculated, show your formula and solution. For problems that need computer-assistance show the printout of your computations. Copying from other groups will cost you 100 points from your 1st exam.