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Question 1 Use the following equation to find the future value of a $ 3 0 , 0 0 0 investment into a 2 0

Question 1
Use the following equation to find the future value of a $30,000 investment into a 20 year treasury at 2.64%? Assume this investment only compounds at a rate of once per year. Also assume we are given the nominal rate of interest.
FV=PV(1+r)n
Where:
FV = Future Value
PV = Present Value
r= rate of interest
n= compounding period
Question 2
Lets assume the rate of inflation is represented by the target average of roughly 2.5%.Using the same inputs, what is the real return of our 20 year treasury? Show all your work.
Question 3
We now want to pursue a more short term investment with more liquidity. Currently, the yield on 2-year US treasuries is 2.51%. Our 2-year treasury will yield a coupon payment every 6-months. Given the expanded version of our FV equation, what is the future value of this investment if all coupon payments were re-invested into principal until maturity? Note: we are only finding nominal returns here.
FV=PV(1+rt)(n)(t)
Where:
FV = Future Value
PV= Present Value
r= rate of interest
n= compounding period
t= compounding frequency
Question 4
We would now like to know the present value of our 10-year treasury from question one. Use your result from question 1 for FV, this time we'll assume a typical compounding period for bonds of every 6 months (remember we are discounting). Use the present value form of our equation presented below:
PV=FV(1+rt)(n)(t)
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