1. Suppose you pay $200 each year for the next 2 years. The interest rate is 5% and you pay the first payment next year. What is this worth in 2 years' time?
A. $410
B. $400
C. $371.88
D. $385.48
2. You observe 4-week T-Bills quoted with a rate of 100 bps. What would be the price?
a. $980.97
b. $909.09
c. $927.82
d. $999.22