Calculate the percentage change in each of rates

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Reference no: EM131991366

1. Suppose that the annual effective rate of interest is 6%, and an investment of $X is made at time 0. The investment has a return of $2000 after 4 years and $1000 after 8 years. Find X.

2. A bond pays annual interest. Its coupon rate is 7.00%. Its value at maturity is $1,000.00. It matures in 4.00 years. Its yield to maturity is currently 4.00%. The duration of this bond is _______ years.

3. What are the current level of the prime rate (4.5%), the discount rate (2.00%), and the three-month T-bill rate (1.61%)? Calculate the percentage change in each of these rates since June 2016.

Reference no: EM131991366

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