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6. (8 points) Bank A offers new customers loans up to $10,000 at a 3% annual effective interest rate. Bank B offers a savings account

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6. (8 points) Bank A offers new customers loans up to $10,000 at a 3% annual effective interest rate. Bank B offers a savings account that earns 3% nominal interest, convertible semiannu- ally. How much money can you make in one year during the arbitrage opportunity? (A) $1.88 (B) $2.14 (C) $2.25 (D) Not an arbitrage oppertunity

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