Question
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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Public Personnel Administration And Labor Relations
Authors: Norma M Riccucci
1st Edition
1317461754, 9781317461753
