You have an opportunity to purchase a government security that will pay $200,000 in five years.

Required:

1. Calculate what you would pay for the security if the appropriate interest (discount) rate is 6 percent compounded annually.

2. Calculate what you would pay for the security if the appropriate interest (discount) rate is 10 percent compounded annually.

3. Calculate what you would pay for the security if the appropriate interest (discount) rate is 6 percent compounded semiannually.