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A bank has issued a six-month, $2.9 million negotiable CD with a 0.45 percent quoted annual interest rate (iCD, sp). c. Immediately after the CD
A bank has issued a six-month, $2.9 million negotiable CD with a 0.45 percent quoted annual interest rate (iCD, sp).
c. Immediately after the CD is issued, the secondary market price on the $3 million CD falls to $2,899,000. Calculate the new secondary market quoted yield, the bond equivalent yield, and the EAR on the $2.9 million face value CD. (Use 365 days in a year. Do not round intermediate calculations. Round your percentage answers to 4 decimal places. (e.g., 32.1616))
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