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A bank has issued a six - month, $ 2 million negotiable CD with a 0 . 5 2 percent quoted annual interest rate (
A bank has issued a sixmonth, $ million negotiable CD with a percent quoted annual interest rate iCD sp
a Calculate the bond equivalent yield and the EAR on the CD
b How much will the negotiable CD holder receive at maturity?
c Immediately after the CD is issued, the secondary market price on the $ million CD falls to $ Calculate the new secondary market quoted yield, the bond equivalent yield, and the EAR on the $ million face value CD
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