Waste less time on Facebook — follow Brilliant.

Excel in math and science

Master concepts by solving fun, challenging problems.

It's hard to learn from lectures and videos

Learn more effectively through short, conceptual quizzes.

Our wiki is made for math and science

Master advanced concepts through explanations,
examples, and problems from the community.

Used and loved by 4 million people

Learn from a vibrant community of students and enthusiasts,
including olympiad champions, researchers, and professionals.

Join using Facebook Join using Google

Join using email

New user? Sign up

Existing user? Sign in

Courses

All
Fundamentals
Intermediate
Industry Applications

Topics

Algebra
Geometry
Number Theory
Calculus
Discrete Mathematics
Basic Mathematics
Logic
Classical Mechanics
Electricity and Magnetism
Computer Science
Quantitative Finance
Chemistry

100 Day Summer Challenge

Our Principles
Testimonials

Practice math and science questions on the Brilliant iOS app. Practice math and science questions on the Brilliant Android app.

About
Help
Terms
Privacy
© Brilliant 2017

Back to all chapters

Introduction to Fixed Income

If we receive $100 per month for the next 100 months, how much is that worth? Is it a deal to pay $10 000 for that priviledge?

Excel in math and science

Master concepts by solving fun, challenging problems.

It's hard to learn from lectures and videos

Learn more effectively through short, conceptual quizzes.

Our wiki is made for math and science

Master advanced concepts through explanations,
examples, and problems from the community.

Used and loved by 4 million people

Learn from a vibrant community of students and enthusiasts,
including olympiad champions, researchers, and professionals.

Your answer seems reasonable. Find out if you're right!

That seems reasonable. Find out if you're right!

Join using Facebook Join using Google

Join using email

New user? Sign up

Existing user? Sign in

Concept Quizzes

Interest Rate

Challenge Quizzes

Level 1-2

Introduction to Fixed Income: Level 1-2 Challenges

A Treasury bill is one of the safest investments in the bond market.

False True

Excel in math and science

Master concepts by solving fun, challenging problems.

It's hard to learn from lectures and videos

Learn more effectively through short, conceptual quizzes.

Our wiki is made for math and science

Master advanced concepts through explanations,
examples, and problems from the community.

Used and loved by 4 million people

Learn from a vibrant community of students and enthusiasts,
including olympiad champions, researchers, and professionals.

Your answer seems reasonable. Find out if you're right!

That seems reasonable. Find out if you're right!

Join using Facebook Join using Google

Join using email

New user? Sign up

Existing user? Sign in

View solution

View wiki

by Chung Kevin

Are you sure you want to view the solution?

Cancel Yes I'm sure

Alex invested $1000 at 10% annual interest, compounded annually.
Brian invested $2000 at 5% annual interest, compounded annually.

After 2 years, how much more interest did Alex earn than Brian?

-$3 $1 $5 -$1 $0 $3 -$5

Excel in math and science

Master concepts by solving fun, challenging problems.

It's hard to learn from lectures and videos

Learn more effectively through short, conceptual quizzes.

Our wiki is made for math and science

Master advanced concepts through explanations,
examples, and problems from the community.

Used and loved by 4 million people

Learn from a vibrant community of students and enthusiasts,
including olympiad champions, researchers, and professionals.

Your answer seems reasonable. Find out if you're right!

That seems reasonable. Find out if you're right!

Join using Facebook Join using Google

Join using email

New user? Sign up

Existing user? Sign in

View solution

View wiki

by Chung Kevin

Are you sure you want to view the solution?

Cancel Yes I'm sure

RAC is offering a Presidents Day (US holiday) special on a Samsung Galaxy.

You can choose between 2 payment plans:
1) 78 weekly worry-free payments of $29.99 each week, starting today.
2) A one-time payment of $829.00 due in 90 days.

Assuming that you want to buy this phone, what is the minimum (positive) daily interest rate that would make a person be indifferent between these payment plans?

1% None of the rest 10% 100% 0.1% 0.01%

Excel in math and science

Master concepts by solving fun, challenging problems.

It's hard to learn from lectures and videos

Learn more effectively through short, conceptual quizzes.

Our wiki is made for math and science

Master advanced concepts through explanations,
examples, and problems from the community.

Used and loved by 4 million people

Learn from a vibrant community of students and enthusiasts,
including olympiad champions, researchers, and professionals.

Your answer seems reasonable. Find out if you're right!

That seems reasonable. Find out if you're right!

Join using Facebook Join using Google

Join using email

New user? Sign up

Existing user? Sign in

View solution

View wiki

by Calvin Lin

Are you sure you want to view the solution?

Cancel Yes I'm sure

10-year treasuries are currently yielding 3%. ABC issued a new 10-year bond with a A+ rating, and it has a 6% yield. What is the implied probability of ABC defaulting on the bond?

2.91% 3.00% 2.83% 2.00%

Excel in math and science

Master concepts by solving fun, challenging problems.

It's hard to learn from lectures and videos

Learn more effectively through short, conceptual quizzes.

Our wiki is made for math and science

Master advanced concepts through explanations,
examples, and problems from the community.

Used and loved by 4 million people

Learn from a vibrant community of students and enthusiasts,
including olympiad champions, researchers, and professionals.

Your answer seems reasonable. Find out if you're right!

That seems reasonable. Find out if you're right!

Join using Facebook Join using Google

Join using email

New user? Sign up

Existing user? Sign in

View solution

by Calvin Lin

Are you sure you want to view the solution?

Cancel Yes I'm sure

If your former high school math teacher opens a bank and loans you $1000 at 10% monthly interest (compounded monthly), which of the following is the closest to the amount that you would owe after a year?

Image credit: smbc-comics.com

\[ $ 1000 \pi \] \[ $1000 \] \[ $ 1000 e \] \[ $ 2200 \]

Excel in math and science

Master concepts by solving fun, challenging problems.

It's hard to learn from lectures and videos

Learn more effectively through short, conceptual quizzes.

Our wiki is made for math and science

Master advanced concepts through explanations,
examples, and problems from the community.

Used and loved by 4 million people

Learn from a vibrant community of students and enthusiasts,
including olympiad champions, researchers, and professionals.

Your answer seems reasonable. Find out if you're right!

That seems reasonable. Find out if you're right!

Join using Facebook Join using Google

Join using email

New user? Sign up

Existing user? Sign in

View solution

View wiki

by Calvin Lin

Are you sure you want to view the solution?

Cancel Yes I'm sure

Waste less time on Facebook — follow Brilliant.

Excel in math and science

Master concepts by solving fun, challenging problems.

It's hard to learn from lectures and videos

Learn more effectively through short, conceptual quizzes.

Our wiki is made for math and science

Master advanced concepts through explanations, examples, and problems from the community.

Used and loved by 4 million people

Learn from a vibrant community of students and enthusiasts, including olympiad champions, researchers, and professionals.

Courses

Topics

Community

100 Day Summer Challenge

Introduction to Fixed Income

Excel in math and science

Master concepts by solving fun, challenging problems.

It's hard to learn from lectures and videos

Learn more effectively through short, conceptual quizzes.

Our wiki is made for math and science

Master advanced concepts through explanations, examples, and problems from the community.

Used and loved by 4 million people

Learn from a vibrant community of students and enthusiasts, including olympiad champions, researchers, and professionals.

Concept Quizzes

Challenge Quizzes

Introduction to Fixed Income: Level 1-2 Challenges

Excel in math and science

Master concepts by solving fun, challenging problems.

It's hard to learn from lectures and videos

Learn more effectively through short, conceptual quizzes.

Our wiki is made for math and science

Master advanced concepts through explanations, examples, and problems from the community.

Used and loved by 4 million people

Learn from a vibrant community of students and enthusiasts, including olympiad champions, researchers, and professionals.

Excel in math and science

Master concepts by solving fun, challenging problems.

It's hard to learn from lectures and videos

Learn more effectively through short, conceptual quizzes.

Our wiki is made for math and science

Master advanced concepts through explanations, examples, and problems from the community.

Used and loved by 4 million people

Learn from a vibrant community of students and enthusiasts, including olympiad champions, researchers, and professionals.

Excel in math and science

Master concepts by solving fun, challenging problems.

It's hard to learn from lectures and videos

Learn more effectively through short, conceptual quizzes.

Our wiki is made for math and science

Master advanced concepts through explanations, examples, and problems from the community.

Used and loved by 4 million people

Learn from a vibrant community of students and enthusiasts, including olympiad champions, researchers, and professionals.

Excel in math and science

Master concepts by solving fun, challenging problems.

It's hard to learn from lectures and videos

Learn more effectively through short, conceptual quizzes.

Our wiki is made for math and science

Master advanced concepts through explanations, examples, and problems from the community.

Used and loved by 4 million people

Learn from a vibrant community of students and enthusiasts, including olympiad champions, researchers, and professionals.

Image credit: smbc-comics.com

Excel in math and science

Master concepts by solving fun, challenging problems.

It's hard to learn from lectures and videos

Learn more effectively through short, conceptual quizzes.

Our wiki is made for math and science

Master advanced concepts through explanations, examples, and problems from the community.

Used and loved by 4 million people

Learn from a vibrant community of students and enthusiasts, including olympiad champions, researchers, and professionals.

Master advanced concepts through explanations,
examples, and problems from the community.

Learn from a vibrant community of students and enthusiasts,
including olympiad champions, researchers, and professionals.

Master advanced concepts through explanations,
examples, and problems from the community.

Learn from a vibrant community of students and enthusiasts,
including olympiad champions, researchers, and professionals.

Master advanced concepts through explanations,
examples, and problems from the community.

Learn from a vibrant community of students and enthusiasts,
including olympiad champions, researchers, and professionals.

Master advanced concepts through explanations,
examples, and problems from the community.

Learn from a vibrant community of students and enthusiasts,
including olympiad champions, researchers, and professionals.

Master advanced concepts through explanations,
examples, and problems from the community.

Learn from a vibrant community of students and enthusiasts,
including olympiad champions, researchers, and professionals.

Master advanced concepts through explanations,
examples, and problems from the community.

Learn from a vibrant community of students and enthusiasts,
including olympiad champions, researchers, and professionals.

Master advanced concepts through explanations,
examples, and problems from the community.

Learn from a vibrant community of students and enthusiasts,
including olympiad champions, researchers, and professionals.