1. A project has a cost of capital of 30%. The final payoff is $250. What should it cost today?
2. A bond promises to pay $150 in 12 months. The annual true interest rate is 5% per annum. What is the bond's price today?
3. A bond promises to pay $150 in 12 months. The bank quotes you interest of 5% per annum, compounded daily. What is the bond's price today?