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1.A company’s net financial expense (after-tax) is $26 million. What is the company's net borrowing cost (after-tax), to two decimal places, if its operating assets and net financial obligations are $864 million and $689 million respectively?\

2.We know that the 6 month zero bond price is $94.9; the 1 year coupon bond price is $90.0 with semi-annual coupon rate 4: the 1.5 year coupon bond price is $96.0 with semi- annual coupon rate 8%. Note that the face value of the bonds are $100. What is the annual 6 month zero rate? Please work on a continuous compounding base. 7.87% 1047 C 10.31% 8.60 8.16% 10.57% 7.80 14,65% 14.39%

3.You manage an investment fund that sells annuities. You sell a 7-year ordinary level annuity that makes monthly payments of $2,897 per month, starting next month. If interest rates are 2.11% APR (compounded monthly) what is the current price of this annuity?
You expect that you will need to replace your furnace in 4 years at a cost of $16,835. How much must you save, each month for 16 months, starting next month (the same amount each month) if your savings account pays 2.27% APR (compounded monthly)?