Question
A bank has issued a six-month, $1.7 million negotiable CD with a 0.46 percent quoted annual interest rate (iCD, sp). Immediately after the CD is
A bank has issued a six-month, $1.7 million negotiable CD with a 0.46 percent quoted annual interest rate (iCD, sp).
Immediately after the CD is issued, the secondary market price on the $2 million CD falls to $1,699,000. Calculate the new secondary market quoted yield, the bond equivalent yield, and the EAR on the $1.7 million face value CD.
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The Global Financial Crisis And The New Monetary Consensus
Authors: Marc Pilkington
1st Edition
0415524059, 978-0415524056
