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1. Consider a 1-year, $10,000 CD What is its value at maturity (future value) if it pays 10.0 percent (annual) interest? a. What would be

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1. Consider a 1-year, $10,000 CD What is its value at maturity (future value) if it pays 10.0 percent (annual) interest? a. What would be the future value if the CD pays 5.0 percent? If it pays 15.0 percent? b. The First National Bank of San Francisco offers CDs with C. 10.0 percent nominal (stated) interest rate but compounded semiannually. What is the effective annual rate on such a CD? What would its future value be? Pacific Trust offers 10.0 percent CDs with daily compounding. What is such a CD's effective annual rate and its value at maturity? d. What nominal rate would the First National Bank have to offer to e. make its semiannual compounding CD competitive with Pacific's daily-compounding CD? 1. Consider a 1-year, $10,000 CD What is its value at maturity (future value) if it pays 10.0 percent (annual) interest? What would be the future value if the CD pays 5.0 percent? If it pays 15.0 percent? a. b. c. The First National Bank of San Francisco offers CDs with a 10.0 percent nominal (stated) interest rate but compounded semiannually. What is the effective annual rate on such a CD? What would its future value be? d. Pacific Trust offers 10.0 percent CDs with daily compounding. What is such a CD's effective annual rate and its value at maturity? What nominal rate would the First National Bank have to offer to e. make its semiannual compounding CD competitive with Pacific's daily-compounding CD

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