1. If the market price today of a $1,000 cash flow in 4 years is $925, what is the implied rate of discount?

2. If the market price today of a $1,000 cash flow in 2 years is $925, what is the implied rate of discount, compounded quarterly?

3. If the market price today, Sept 18, of a $1,000 cash flow in 2 months is $995, what is the implied rate of discount?

Extra Credit. You invest $1,000 Monday, Sept 1, for a week at 1.25%. Because Monday the 8th is a bank holiday, you will not receive your proceeds until the next day, for which interest will not be paid. What is your effective rate (the annualized rate you really received)?