1. A. Calculate the bond equivalent yield and effective annual return on a negotiable CD that is 132 days from maturity and has a quoted nominal yield of 1.24%.

B. If $2 million is invested in this CD, how much (in dollars) will the investor receive at maturity?

C. Immediately after the CD is issued, the secondary market price on the $2 million CD falls to $1,993,000. Calculate the new secondary market quoted yield (ispy), the bond equivalent yield, and the ER on this CD.