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1.You have deposited $10,000 in a two-year CD. The interest rate is 3%. What will be the future value if: a.The bank calculates the interest

1.You have deposited $10,000 in a two-year CD. The interest rate is 3%. What will be the future value if:

a.The bank calculates the interest rate annually.

b.The bank calculates interest rate semi-annually.

c.The bank calculates interest on monthly basis.

2.You have just purchased a bond which has three years left to its maturity. The coupon rate is 6% and the yield is 6.8%. Due to changes in the financial markets, the yield drops to 6.5%. What is the percentage gain for you?

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