A zero coupon bond with a face value of $2500 and a maturity date of 10 years sells for $1250 today. What is the effective annual interest rate or yield for this bond? A credit card quotes a rate as 21.5% compounded monthly. What is the effective annual interest rate? What would the effective annual interest rate be with daily compounding (assume the 360 day convention)? What is the effective annual interest rate with continuous compounding? A zero coupon bond has a face value of $10,000. The bond trades today for $7835.26. Current interest rates for this class of bonds are AR=5%. Assume annual compounding. In how many years is the bond due? What is the present value of the following series of cash flows? Let r = .035. In the market, interest rates are not always constant over different time horizons. Assume that two zero coupon bonds each have a face value of $1000. The first bond matures in one year and sells for $961, 538 today while a second bond that matures in two years sells for $915, 751 today. Find the implied annual interest rates for years 1 and 2, (i.e. find r_1 and r_2). Use this information to compute the current price of a 5% annual coupon bond that returns $50 at the end of one year and $1050 at the end of the second year. A note of $50,000 is amortized with interest rate of r = 0.04 and 4 equal payments. Complete the following repayment schedule. Round the cash flows, payments, interest, and balances to two decimal places (i.e. pennies)