6. You put $1, 000 into a savings account today that offers a 5% APR with semi-annual compounding {i.e., two times per 1 point year). What is the effective annual rate of the saving account? 0 0.1025 0 1.1025 0 0.0250 0 0.0975 7. Consider the following figure that presents three yield curves: 6.00 HOM Corporate (July 2014) Yield to Maturity (%) 5.00 4.00 Municipal AAA (July 2014) 3.00 Treasury (July 2014) 2.00 1.00 0.00 7.5 Maturity (Years) Based on the yield curves in the figure, what is the approximate cost of borrowing for highly rated corporate borrowers over a 5-year term? O 2.27% 1.50% 3.54% None of the answers are correct 0.00%8. Consider the following figure that presents three yield curves: 6.00 HOM Corporate (July 2014) Yield to Maturity (%) 5.00 4.00 Municipal AAA (July 2014) 3.00 Treasury (July 2014) 2.00 1.00 0.00 23. 24.5 26.0 27.5 29.0 Maturity (Years) Based on the yield curves in the figure, what is the approximate cost of borrowing for highly rated corporate borrowers over a 20-year term? 4.66% 0.00% 3.54% 1.50% None of the answers are correct