Question: Question: A five-year promissory note for $5700 plus interest at 6.75% compounded semiannually was sold 18 months before maturity for $6620. What monthly compounded nominal

Question:

A five-year promissory note for $5700 plus interest at 6.75% compounded semiannually was sold 18 months before maturity for $6620. What monthly compounded nominal rate of return will the buyer realize on the investment?

A four-year promissory note for $3800 plus interest at 9.5% compounded semiannually was sold 18 months before maturity for $4481. What quarterly compounded nominal rate of return will the buyer realize on her investment?

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