Please show your work.

Section $1$: TVM basics: $($Submit in Word$)$

Suppose a State of Texas bond will pay $$2,000$ ten years from now. If the going interest rate on these

$10-$year bonds is $0\mathrm{.}5\%,$ how much is the bond worth today?

Suppose you have $$1,000$ and plan to purchase a $10-$year certificate of deposit $($CD$)$ that pays $1\mathrm{.}0\%$

annual interest, compounded annually. How much will you have when the CD matures?

Suppose you have $$1,000$ and plan to purchase a $10-$year certificate of deposit $($CD$)$ that pays $1\mathrm{.}0\%$

annual interest, compounded guarterly. How much will you have when the CD matures?

$($Hint: To incorporate the compounding effect, you need to convert the annual interest rate into the

quarterly interest rate, and convert years into quarters to get correct answer$).$

Suppose you have $$1,000$ and plan to purchase a $10-$year certificate of deposit $($CD$)$ that pays $1\mathrm{.}0\%$

annual interest, compounded monthly. How much will you have when the CD matures?

$($Hint: To incorporate the compounding effect, you need to convert the annual interest rate into the

monthly interest rate, and convert years into months to get correct answer$).$

Suppose you have $$1,000$ and plan to purchase a $10-$year certificate of deposit $($CD$)$ that pays $1\mathrm{.}0\%$

annual interest, compounded daily. How much will you have when the CD matures?

$($Hint: To incorporate the compounding effect, you need to convert the annual interest rate into the

daily interest rate, and convert years into days to get correct answer$).$