Question 3 (1 point) An investment contract promises two payments of $500, the first in 6 months and the second in 8 months. Calculate the value of the contract today if the required rate of return on the investment is 6.05%. Your Answer: Answer Question 4 (1 point) Calculate the price of $80,000, 182-day commercial paper on its issue date if the current market rate of return is 3.80%. Express your answer to 2 decimal places, but don't include the $ symbol. Your Answer: Answer Question 5 (1 point) Calculate the price of a $40,000, 91-day Treasury bill on its issue date if the current market rate of return is 3.00%. Express your answer to 2 decimal places, but don't include the $ symbol. Your Answer: Answer Question 6 (1 point) Calculate the maturity value of $15,000 placed in a 129-day term deposit paying an interest rate of 4.55%. Express your answer to 2 decimal places, but don't include the $ sign. Your Answer: Answer Rob has $1,000 to invest for 120 days and is considering two options. Option 1: He can invest the money in a 120-day GIC paying simple interest of 4.56%. Option 2: He can invest the money in a 60-day GIC paying simple interest of 4.50% and then re-invest the maturity value into another 60-day GIC. What would the interest rate on the second 60-day GIC have to be for both options to be equivalent? Round your answer to two decimal places and don't include the % symbol. Your Answer: Mahesh borrowed $7,725 from Becky. He signed a contract agreeing to pay it back 9 months later with 4.35% simple interest. After 3 months, Becky sold the contract to Stan at a price that would earn Stan 5.00% simple interest per annum. Calculate the simple interest rate that Becky earned during the period that she held the contract. Express your answer as a percentage rate rounded to 2 decimal places but don't include the % sign. Your Answer: Answer Peter borrowed $4,000 on January 2nd. The simple interest rate charged on his loan was initially 6.75% and increased to 7.00% on January 15th. His bank charges interest at the end of each month. Calculate the missing values from the table below. Time Period #Days Interest Rate Interest Amount Jan 2 - Jan 15 13 Jan 15 - Jan 31 16 6.75% 7.00% Total Interest Due: A B C Place the value for A in the first box, B in the second and C in the third. Round your answers to 2 decimal places. A/ A