What is the future value of five annual payments

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Problem 1: What is the future value of 5 annual payments of $250, with the first payment to occur one year from today, if the interest rate is 10% p.a.?

Select one:

a. $1491
b. $1578
c. $1540
d. $1526

Problem 2: What is the price of a zero-coupon bond with a face value of $500, 9 years to maturity and a yield of 4.8% p.a.?

Select one:

a. $323.01
b. $329.97
c. $327.88
d. $334.16

Reference no: EM132726380

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