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1. If peter borrows $100 from his sister and three years later she wants $130 back from him, what is the return (yield-to-maturity, interest rate)

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1. If peter borrows $100 from his sister and three years later she wants $130 back from him, what is the return (yield-to-maturity, interest rate) on this loan? 2. You won a lottery with grand prize of $10 million, payable over 20 years at $500,000 per year. If the first payment is made immediately. If your friend Jenny is willing to buy it from you at $6,079,058.25 today. What is the return she is looking for? 3. Calculate the present value of a $1,000 zero-coupon bond with 5 years to maturity if the required annual interest rate is 6%

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