1) You want to purchase a security that will pay you $1,000 seven years from now. If you want to earn an annual nominal rate of 6.5 percent, how much should you pay for this investment today?
2) You invest $3,600 today at a nominal annual rate of 5.5 percent. This investment will pay one payment five years from now. What will be the amount of that payment?
3) A Treasury bill has 21 days to maturity and a bank discount yield of 1.89 percent. What is the bond equivalent yield?
4) A Treasury bill has a face value of $250,000, an asked yield of 2.02 percent, and matures in 32 days. What is the price of this bill?
5) A $50,000 face value STRIPS is quoted at 94.300. What is the dollar price?