1. you have $1,000 and plan to purchase a 10-year certificate of deposit (CD) that pays 1.0% annual interest, compounded quarterly. How much will you have when the CD matures?
2. you have $1,000 and plan to purchase a 10-year certificate of deposit (CD) that pays 1.0% annual interest, compounded monthly. How much will you have when the CD matures?
3. you have $1,000 and plan to purchase a 10-year certificate of deposit (CD) that pays 1.0% annual interest, compounded daily. How much will you have when the CD matures?
4. the U.S. Treasury offers to sell you a bond for $900.00. 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 at the offer price?