Suppose you pay 200 each year for the next 2 years the


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

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Financial Management: Suppose you pay 200 each year for the next 2 years the
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