You sign up for a credit card offer with a 12-month promotional period at 0% APR on purchases, after which the APR reverts to 24% with monthly interest. You use your credit card to buy a $5000 piano.

C2-(a): Ignoring any minimum payments and any fees, what will your credit card balance be in 3 years?

C2-(b): What is your total interest rate over the 3-year period, and the corresponding annualized rate?

Question C3: Compute the price of a 2-year U.S. government bond with $1000 par amount, 5% coupon rate and 10% yield.