A bank has issued a six-month 2 million negotiable cd with, Ask an Expert

Economics

A bank has issued a six-month, $2 million negotiable CD with a 0.52 percent quoted annual interest rate.

A. Calculate the bond equivalent yield and the EAR on the CD

b. How much will the negotiable CD holder receive a maturity?

C. Immediately after the cd is issued, the secondary price on the $2 million CD falls to $1,998,750. Calculate the new secondary market quoted yield, the bond equivalent yield, and the EAR on the $2 million face value CD

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91295330

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