1. Distinguish between asset management and liability management. Would you consider the the ability of a financial institution to issue commercial paper asset or liability management? Why?
2. Alex pays $ 2621.068 for an annuity that pays him $ 500 at the end of every 4 months for 2 years. Elinor pays $ 2482.165 for an annuity that pays her $ 700 at the end of every six months for 2 years. Who got the best deal? Be sure to show the table for Newton’s Method.