1. Your friend is considering investing $8,000 at the end of every quarter in a bank account paying 9% per annum. The first contribution will be made at the end of the first quarter. If interest is compounded monthly, the total amount she will have accumulated at the end of twelve years will be closest to:
a) $460,166
b) $644,503
c) $678,983
d) $682,102
2. Ninety days ago, you purchased a 180-day Treasury bill with a face value of $100,000. At that time, the yield to maturity on the bill was 6.0% p.a. The current yield to maturity on the bill is 5.0% p.a. The price of the bill today is closest to:
a) $97,126
b) $97,594
c) $98,542
d) $98,782