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Q2. Question 2: You are analyzing an investment in relation to treasury bonds. Over the next five years, you observed the following prices for a series of one-year treasury bonds: Year 1: $980 (to mature at $1,000 in one year) Year 2: $970 (to mature at $1,000 in one year) Year 3: $960 (to mature at $1,000 in one year) Year 4: $950 (to mature at $1,000 in one year) Year 5: $940 (to mature at $1,000 in one year) Given another investment that promises the following cash flows over the same five years, and using the risk-free rates you just calculated: Year 1: $1,100 Year 2: $1,200 Year 3: $1,150 Year 4: $1,300 Year 5: $1,250 Calculate the present value of these cash flows.

          Q2.
Question 2:
You are analyzing an investment in relation to treasury bonds. Over the next five years, you
observed the following prices for a series of one-year treasury bonds:
Year 1: $980 (to mature at $1,000 in one year)
Year 2: $970 (to mature at $1,000 in one year)
Year 3: $960 (to mature at $1,000 in one year)
Year 4: $950 (to mature at $1,000 in one year)
Year 5: $940 (to mature at $1,000 in one year)
Given another investment that promises the following cash flows over the same five years, and
using the risk-free rates you just calculated:
Year 1: $1,100
Year 2: $1,200
Year 3: $1,150
Year 4: $1,300
Year 5: $1,250
Calculate the present value of these cash flows.

Q2.
Question 2:
You are analyzing an investment in relation to treasury bonds. Over the next five years, you
observed the following prices for a series of one-year treasury bonds:
Year 1: 980 (to mature at1,000 in one year)
Year 2: 970 (to mature at1,000 in one year)
Year 3: 960 (to mature at1,000 in one year)
Year 4: 950 (to mature at1,000 in one year)
Year 5: 940 (to mature at1,000 in one year)
Given another investment that promises the following cash flows over the same five years, and
using the risk-free rates you just calculated:
Year 1: 1,100
Year 2:1,200
Year 3: 1,150
Year 4:1,300
Year 5: 1,250
Calculate the present value of these cash flows.

Added by Jeff G.

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