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1. Why do many emerging market economies prefer to adopt a fixed exchange rate, while developing countries fix their currencies?

2.You are a commercial property owner. A prospective customer offers to rent your property for ten years, with equal annual payments of $10,000, starting immediately. Assuming that your discount rate is 10%, what is the present value of this proposal?

3.Excel Online Structured Activity: Bond valuation

You are considering a 15-year, $1,000 par value bond. Its coupon rate is 9%, and interest is paid semiannually. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below.

Open spreadsheet

If you require an "effective" annual interest rate (not a nominal rate) of 11.28%, how much should you be willing to pay for the bond? Do not round intermediate steps. Round your answer to the nearest cent.

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