If the cost of capital is 5% per annum, what is the discount factor for a cash flow in two years

2. The price of a bond that pays $100 in a year is $95. What is the implied interest rate?

3. Suppose that your aunt wants to give you a graduation present, but she doesnt know whether to give you $1,000 cash when you graduate or a savings bond that will have a value of $1,655 when it matures in eight years. Assume your opportunity cost rate is equal to 6.5%. Which one would you choose?

4. If you are tripling your money every 12 years, what is your rate of return per year?