1. Mr N invests $5000 in a certificate of deposit at his local bank. He receives 2 percent compounded annually for 5 years. How much interest does his investment earn during this time period?
2. An investor paid a full price of $ 1,059.04 each for 100 bonds. The purchase was between coupon dates, and the accrued interest was $23.54 per bond. What is each bond’s flat price?
3. Three (3) areas of risk on both sides of the Balance Sheet and how these risks could reduce the Net Deposit Drain on the institution.