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A 2-year Treasury security has a face value of $2000, an issue date of April 1, 2016, a maturity data of April 1, 2018, and

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A 2-year Treasury security has a face value of $2000, an issue date of April 1, 2016, a maturity data of April 1, 2018, and a coupon of $40. On April 1, 2017, you decide to purchase a security. You could purchase either this security with one year remaining to the maturity date, or a newly released 1-year security with a face value of $2000 and a coupon of $50. You decide to purchase the 2-year security. The next day, investors decide they will only buy Treasury securities if they receive an interest rate of 3.5%. If you decide to sell your Treasury security on April 2, 2017, calculate the capital gain/loss you will receive suppose you purchase a new home for $325,000, make a down payment of 20% and borrow the rest with a mortgage. What is the return on your investment in your home if one year later the price of your home falls in value by 2.5% (to the nearest decimals)

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