Question: How do I calculate the below questions? Please break down so I can understand. For questions 1-4 you must show me the work so the

How do I calculate the below questions? Please break down so I can understand.

For questions 1-4 you must show me the work so the inputs to the formula in order to get credit.For example, it must look something like this - PV = 100 / ( 1 + .08)5 = 146.93.If it is difficult to do on Word, then write it on a piece of paper and submit a picture of the paper.

  1. Suppose a U.S. government bond promises to pay $5,000 three years from now.If the going interest rate on a 3 year government bond is 5%, how much is the bond worth today?
  2. What if the rate on the bond above changed to 3%?How much would the bond be worth today?
  3. You have $5,000 to invest in a 2 year certificate of deposit (CD) that pays 8% interest compounded annually.How much will you have when the CD matures?
  4. You have $10,000 to invest in a 5 year certificate of deposit (CD) that pays 10% interest compounded annually.How much will you have when the CD matures?

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