What is the one-year interest rate

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Reference no: EM131190221

a. If the one-year discount factor is .9183, what is the one-year interest rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)ANSWER: Interest rate 8.90 %

b. If the two-year interest rate is 8.9%, what is the two-year discount factor? (Do not round intermediate calculations. Round your answer to 4 decimal places.) ANSWER: Discount factor .8432

c. Given these one- and two-year discount factors, calculate the two-year annuity factor. (Do not round intermediate calculations. Round your answer to 4 decimal places.

Reference no: EM131190221

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