1. What is the present value of a 10-year annuity that makes $500 payments, but doesn’t start making payments until 5 years from today? Assume a 10% discount rate
2. Suppose that your required real rate of return is 4.0 percent and the inflation rate is 3.0 percent. You would expect to see a rate of ______ percent on a Treasury bill. Do not include the percent sign (%). Round your answer to 2 decimal places.