what is the present value of a security that pays you 1 050 next year and 1 102 50 t 637861

1) In Japan in 1998 and in the U.S. in 2008, interest rates were negative for a short period of time because investors found it convenient to hold six month bills as a store of value because

A) of the high inflation rate.

B) these bills sold at a discount from face value.

C) the bills were denominated in small amounts and could be stored electronically.

D) the bills were denominated in large amounts and could be stored electronically.

2) If the interest rate is 5%, what is the present value of a security that pays you $1, 050 next year and $1,102.50 two years from now? If this security sold for $2200, is the yield to maturity greater or less than 5%? Why?