What would be your annualized discount rate % and our annualized investment rate % on the purchase of a 182-day Treasury bill for $4, 925 that pays $5, 000 at maturity? What is the annualized discount rate % and your annualized investment rate % on a Treasury bill that you purchase for $9, 940 that will mature in 91 days for $10, 000? Consider the following cash flows. All market interest rates are 12%. Year 0 12 3 4 Cash Flow 160 170 180 230 What price would you pay for these cash flows? What total wealth do you expect after 21/2 years if you sell the rights to the remaining cash flows? Assume interest rates remain constant. What is the duration of these cash flows? Immediately after buying these cash flows, all market interest rates drop to 11 %. What is the impact on your total wealth after 21/2 years? Last modified: Sunday, January 26, 2014, 9:20 PM