1. A friend wants to borrow money from you. He states that he will pay you $2,500 every 6 months for 7 years with the first payment exactly 3 years and six months from today. The interest rate is 4.8 percent compounded semiannually. What is the value of the payments today?
2. You have decided to buy a car that costs $31,400. Since you do not have a big down payment, the lender offers you a loan with an APR of 6.29 percent compounded monthly for 5 years with the first monthly payment due today. What is the amount of your loan payment?
3. A stock has a beta of 2.3, the expected return on the market is 10 percent, and the risk-free rate is 4.1 percent. The expected return on this stock must be ______ percent. (Do not include the percent sign (%). Round your answer to 2 decimal places. (e.g., 32.16))