1. Which of the following options will be worth more in 5 years: (i) $10,000 invested at 8.2% or (ii) $13,000 invested at 3.7%?

2. A bond issued by ABC Inc. has a coupon rate of 7% for the next five year, a face value of $800, and the yield to maturity is 11.11%. Calculate the current price of the bond.

3. Suppose that the duration of a security is 2.7 years, and the interest rate changes from 10% to 11%. Calculate the percentage change in asset value, percentage change in liabilities, and percentage change in the net worth.