Find the interest contained in the installment

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1. A loan is being repaid with equal annual installments at 4% effective per annum. If the principal repaid in the next to last installment is $100, find the interest contained in the installment due 5 years before the last installment. A. 18.52 B. 21.81 C. 19.39 D. 19.26 E. 22.68

2. The on-year forward rate for year 2 is 4%. The expected spot rate at the end of year 2 on a zero-coupon bond maturing at the end of year 4 is 7%. The four year expected spot rate is 7%. Determine the one-year spot rate. A. 31.57% B. 26.65% C. 22.96% D. 18.23% E. 10.09%.

Reference no: EM131553337

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