1. You sold a US bond on May 1 that has a coupon rate of 6%/year payable semi-annually on 1/1 and 7/1. How much accrued interest will you receive?
2. You made an investment of $800 that is expected to have returns of $200 at the end of Year 1, $300 end of Year 2 and $400 end of Year 3. A. Draw a timeline from your perspective. B. If the discount rate is 4%/year, what is the investments NPV?