What yield rate did the other investor earn

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Q1. If money is worth 10% compounded annually, which of the following obligations is more valuable?

A. Php 2,100 due at the end of two years without interest or

B. Php 2,000 due at the end of 4 years with accumulated interest from today at the rate of 12% compounded semi-annually.

Q2. An investment dealer bought a Php 25,000 364-day treasury bill for Php 23,892.06.

A. What yield rate is implied?

B. A treasury bill was purchased on september 7, 2006. The dealer sold it to another investor on January 25, 2007 for Php 24,102.25. What yield rate did the other investor earn? What rate of return did the dealer earn?

Reference no: EM133114423

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