Suppose you are in a hurry to get your income tax refund. If you mail your tax return, you will receive your refund in 3 weeks. If you file the return electronically through a tax service, you can get the estimated refund tomorrow. The service subtracts a $50 fee and pays you the remaining expected refund. The actual refund is then mailed to the preparation service. Assume you expect to get a refund of $978. What is the APR (annual percentage rate) with weekly compounding? What is the EAR (effective annual percentage rate)? How large does the refund have to be for the APR to be 15%?

. A bond with a 7% annual coupon and 10 years to maturity has YTM=9 %p.a. What is the bond price today, if its par (face) value is $1,000?

. A bank agrees to lend you $3,000 today in return for your promise to pay back $5,287 5 years from today. What rate of interest is the bank charging you?