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Assume the market price of $1,000 in 3 years at $880. a) If interest is not compounded, what is the implied interest rate? b) If

  1. Assume the market price of $1,000 in 3 years at $880.

a) If interest is not compounded, what is the implied interest rate?

b) If interest is compounded annually, what is the implied rate?

c) If compounded quarterly?

2. If the market price on Sept 4 of $1,000 to be paid in 3 months at $980, what is the implied interest rate?

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