1. Calculate the discounted value at 1 April 2012 of payments of £ 10.2 due on 1 September 2013 and £ 17.1 due on 1 April 2014. Assume a constant force of interest of 1.4 per annum.
2. Calculate the discounted value at 1 September 2022 of payments of £ 12.9 due on 1 September 2024 and £ 19.2 due on 1 March 2025. The interest rate is constantly 10% p.a. effective.
3. Suppose an investor invests initially £ 2000, and receives two payments, £ 800 after one year, and £ 1500 after two years.
What is the yield of this transaction, given in %?