1. You are offered a note that pays $90 in 13 months (or 396 days) for $75. You have $75 in a bank that pays a 6.8 nominal rate, with 365 daily compounding. You plan to leave the money in the bank if you don't buy the note. The note is riskless. Should you buy it? Why? Three solution methods 1. Greatest future wealth: FV 2. Greatest wealth today: Pv Highest rate of return: EFF% 1. Find FV of $75 left in bank for 13 months and compare with note's FV $90. 2. Find PV of note by using m offered by bank, and compare with its $75 cost: 3. Find the EFFS on note and bank, and then compare them