Answer the following questions and explain how you reached the answer
Problem 1-
• Show your work in a mathematical calculation.
• Calculated present value of the payments that would be received.
1. You have just won the Lottery jackpot of $11,000,000. You will be paid in 26 equal annual installments
beginning immediately. If you had the money now, you could invest it in an account with a quoted annual
interest rate of 9% with monthly compounding of interest. What is the present value of the payments you will
receive?
2. In your own words and using various bond websites, locate one of each of the following bond ratings: AAA,
BBB, CCC, and D. Describe the differences between the bond ratings. Identify the strengths and weaknesses
of each rating.

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