1. Fill in the blanks: a. A credit card interest rate is quoted as an _ _ _. b. A bank CD interest rate is quoted as an _ _ _. c. The interest rate for a bond is quoted as an _ _ _.

2. If your credit card carries a rate of 1.4% per month, what is its APR? (Your answer should be a % carried to 1 place.)

3. Your credit card carries an annual rate of 15% APR, and interest is due monthly. If you dont pay the minimum monthly amount, what is its EAR? (Your answer should be a % carried to 2 places.)

4. You invest in a 30-year US Treasury bond that pays interest of 1.8% per year. If inflation is 1.5% 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? (Answer is 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 few words, what is an inverted yield curve? c. An inverted yield curve is a prediction of: ___________________________.