You have heard about a new "green" light bulb that is costly to purchase but uses less electricity and thus allows you to save money on your utility bill. Suppose the new light bulb costs $10 today, but next year your electricity bill will be $50 lower. If the interest rate is 10%, what is the net present value of buying this new light bulb and using it for one year? OA. $40 OB. -$45.45 OC. $55 OD. $35.45

Answer manually not by excel

Suppose that a 2-year zero-coupon bond with face value $1,000 currently sells at $840, while a 1-year zero-coupon bond with face value $1,000 currently sells at $920. You are considering the purchase of a 2-year coupon bond that pays coupon annually. The face value of this coupon bond is $1,000 and coupon rate is 12% per year.   Required: a. What is the yield to maturity of the 2-year zero-coupon bonds? b. What is the current price of the 2-year coupon bond? c. What is the forward rate of the second year? d. If the expectation hypothesis is accepted, what are (1) the expected price of the coupon bond at the end of the first year and (2) the expected holding period return on the coupon bond over the first year? e. Will the expected rate of return be higher or lower if you accept the liquidity preference hypothesis?

Question 2. Based on the following cash flow diagram, calculate the value of X with the interest rate of 10%. 150$ 150$ 15o$ 150$ 150$ 150$ 150$ 75$ 10 11 X= ?