1. One year treasury bills currently earn 3.45% you expect that one year from now one year treasury bill rate will increase to 4.25% if the unbiased expectations theory is correct what should the current rate be on two-year treasury securities?

2. calculate the present value of 5000 receive five years from today if your investments pay

a. 6% compounded annually.

b. 8% compounded annually.

c. 7.5% compounded annually.

d. 7.5% compounded semi annually.

e. 7.5% compounded quarterly.

3. how much money would you have to deposit today in order to have $2000 in four years if the discount rate is 6.5% per year?

4. You can save $1000 per year for the next six years in an account earning 10% per year. How much will you have at the end of the sixth year if you make the first deposit today?