1. Victor owes $6500 to Virginia. The loan is payable in one year at 6% interest. Virginia needs cash to pay medical bills, so four months before the loan is due, sells the note (loan) to the bank. If the bank wants a return of 9% on the investment, how much should it pay Virginia for the note. 2. George buys a six month treasury bill and sell at a discount rate of 4.5%. What is the amount of the discount? What is the price of the T-bills? 3. Diana bought a 15 year zero-coupon bond paying 4.5% interest compounded semiannually for $12,824.50. What is the face value of the bond? 4. Suppose that the inflation rate is 3.5% which means that the overall level of the prices is rising 3.5% a year. How many years will it take for the overall level of prices to double? 5. Keisha must pay a lump sum of $6000 in 5 years. What amount deposited today at6.2% compounded annually will amount to $6000in 5 years? 6. Assuming an annual inflation rate of 3.5%, how much did an item that sells for $100 today cost four years ago