The annuity factors for a $5-$year and a $6-$year annuity are, respectively:

$A{F}_5=3\mathrm{.}9927$

$A{F}_6=,4\mathrm{.}6229$

The discount rate is the same in both cases.

a$)$ What is the value of the $6-$year discount factor?

$6-$year discount factor, $D{F}_6=$

$($Hint: an annuity factor is the sum of discount factors$)$

b$)$ From your answer to part a$),$ calculate the discount rate.

For your convenience, the calculation is broken down into separate steps.

Step $1=(1+r{)}^6=\frac{1}{D}{F}_6=$

Step $2=(1+r)=($ Step $1{)}^{\frac{1}{6}}$

Discount rate, $r=$ Step $2-1$

per year

c$)$ What is the $10-$year annuity factor using the discount rate from part b$)?$

$10-$year Annuity Factor, $A{F}_{10}=$

d$)$ What is the $7-$year discount factor using the discount rate from part b$)?$

$7-$year discount factor, $D{F}_7=$