1. The 3-month T-bill with a face value of $100 is selling for $98 today. T-bills don’t pay any coupons. The only payment to investor is the face value at maturity. Given this information, what is the continuous compounding zero rate for three months?
2. Sarah bought a house for $515,000 financing at 3.59% for 20 years (weekly payments). This is a standard Canadian mortgage with semi-annual compounding. calculate the payment amount. Show all work and calculator entries.