Continue to answer Questions. Question 2 and 3?

2) The portfolio manager of a tax-exempt fund is considering investing $500,000 in a debt instrument that makes a one-time payment four years from now that grows at an annual interest rate of 5.7%, compounded annually. At the end of four years, the portfolio manager plans to reinvest the proceeds into a security that will make a one-time payment three years after that, and expects that an annual interest rate of 7.2%, compounded annually, can be earned over this three year period. What is the seven-year expected future value of this investment?

3). Suppose that the portfolio manager in Question 2 has the opportunity to invest the $500,000 in a debt obligation that makes a one-time payment seven years from now, and that promises to pay an annual interest rate of 6.1% compounded semiannually. Is this investment alternative more attractive than the one in Question 2?