Q1. Which of the following amounts is closest to the end value of investing $7500 for 2 1/2 years at an effective annual interest rate of 12.36%? Interest is compounded semiannually?

a) $7,531

b) $8,427

c) $9,818

d) $9,469

e) $10,037

Q2. The value of a 20 year zero-coupon bond when the market required rate of return of 9% (semi0annual compounding) is:

a) $414.64

b) $318.38

c) $171.93

d) $178.43

e) None of the above.