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Question 1: You buy a bond, which pays no interest called the zero-coupon bond. The bond costs you $700 and matures in 7 years, paying

Question 1: "You buy a bond, which pays no interest called the zero-coupon bond. The bond costs you $700 and matures in 7 years, paying you $1,199. What annual rate of return did you earn assuming semi-annual compounding?

question2: The Finders Corporation s dividend for the past five years has grown like compound interest. The growth rate has been 10% per year compounded annually. The dividend this year was $4. How much will the dividend be in three years?

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