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1. A) An APR quotation where interest is paid quarterly will be Higher, Lower or the Same as as an EAR quotation. B) An APR

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1. A) An APR quotation where interest is paid quarterly will be Higher, Lower or the Same as as an EAR quotation. B) An APR quotation where interest is paid semi-annually will be Higher, Lower or the Same as an EAR quotation. C) An APR quotation where interest is paid annually will be Higher, Lower or the Same as an EAR quotation. 2. If your credit card carries a rate of 1.7% per month, what is its APR? (Your answer should be a % carried to 1 place) 3. Your credit card carries an annual rate of 21.6% APR with a minimum payment due monthly. If you don't pay the monthly minimum amount for a year, what is its EAR? (Your answer should be a % carried to 2 places.) 4. You invest in a 10-year Peloton bond that pays interest of 8.7% per year. If inflation is 6.1% per year, what is: a. The exact, real interest rate (Your answer should be a \% carried to 3 places), and b. The approximate real interest rate? (Your answer should be a % carried to 1 place) 5. Yield curve questions: a. The US Treasury yield curve provides clues about the future direction of: 1) 2) and 3). b. In a couple of words, why is the US Yield Curve usually upward sloping? c. Per Figure 5.5 in the textbook, how is an "inverted curve" defined? d. An inverted yield curve is a reliable prediction of

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