1. Suppose the US treasury offers to sell you a bond for $3000. No payments will be made until the bond matures 10 years from now, at which time it will be redeemed for $5000. What annual interest rate would you earn if you bought this bond at the offer price?
2. You plan to invest bonds that pay 6% compounded annually. if you invest $10000 today, how many years will it take for your investment to grow to $30000?