1) Suppose that you inherited some money. Friend of yours is working as the unpaid intern at the local brokerage firm, and her boss is selling securities which call for 4 payments of $50 (1 payment at the ending of each of next four years) plus the additional payment of $1,000 at the ending of Year four. Your friend says she can get you some of these securities at the cost of $950 each. Your money is now invested in the bank which pays the 10% nominal (quoted) interest rate but with quarterly compounding. You observe the securities as being just as safe, and as liquid, as your bank deposit, so your necessary effective annual rate of return on securities is similar as that on your bank deposit. You should compute the value of securities to make a decision whether they are good investment. Determine their present value?