Questions 19 and 20

19. The U.S. Treasury offers to sell you a bond for $585.43. No payments will be made until the bond matures 10 years from now, at which time it will be redeemed for $1,000. What interest rate would you earn if you bought this bond for $585.43? 20. Suppose you currently have $5,000 and plan to purchase a 3-year certificate ofdeposit (CD) that pays 5% interest compounded annually. How much will you have when the CD matures