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Q#1a) If the 1-year discount factor is .905, what is the 1-year interest rate? b) If the 2-year interest rate is 10.5%, what is the

Q#1a) If the 1-year discount factor is .905, what is the 1-year interest rate? b) If the 2-year interest rate is 10.5%, what is the 2-year discount factor? c) Given these 1- and 2-year discount factors, calculate the 2-year annuity factor d) If the PV of $10 a year for three years is $24.65, what is the 3-year annuity factor? e) Using your answers above, find the 3-year discount factor

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