1. If money supply increased what happen to the level of interest rate explain in details with examples
2. A start up company is expecting net income to be $100,000 in the first year, $1560,000 the second year, $200,000 the third year and $250,00 the fourth year. What is the future equivalent of the cash flows if i=12%?
3. A 36-year maturity bond with par value $1,000 makes semiannual coupon payments at a coupon rate of 14%. What is the EFFECTIVE annual yield to maturity of the bond if the bond sells for $1,130?