2. A new security will pay an initial cash flow of 100 in 1 year. Thereafter it

2. A new security will pay an initial cash flow of 100 in 1 year. Thereafter it will pay cash flows every month for the rest of time. The cash flows will grow at 3% per year compounded monthly forever. If you require a return of 6% per year compounded monthly how much would you be willing to pay for this security?3. Your brother in law borrowed 2000 from you 4 years ago and then disappeared. Yesterday he returned and expressed a desire to pay back the loan including interest accrued. Assuming that you had agreed to charge him 10% per year compounded annually and assuming that he wishes to make five equal annual payments beginning in one year how much would your brother in law have to pay you annually in order to pay off the debt? (Assume the loan continues to have accrue interest at 10% per year)