Question
A friend asks to borrow $55 from you and in return will pay you $58 in one year. If your bank is offering a 6%
A friend asks to borrow $55 from you and in return will pay you $58 in one year. If your bank is offering a 6% interest rate on deposits and loans: a. How much would you have in one year if you deposited the $55 instead? b. How much money could you borrow today if you pay the bank $58 in one year? c. Should you loan the money to your friend or deposit it in the bank?
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Bond Markets Analysis and Strategies
Authors: Frank J.Fabozzi
9th edition
133796779, 978-0133796773
