c. The First National Bank of

San

Draneisco offers CDa with a 10.0 percent roainal (stated) iaterest rate but compounded semiannually. What is the effective annual rate on such a CD? What would its future value be?\ d. Pacific Trust offers 10.0 percent CDs with daily compounding. What is such a CD'a efiective annual rate and its value at maturity?\ What nominal rate would the First National Bank have to offer to make its semiannual compounding CD competitive with Pacific's dally-eompounding CD?\ Now consider a 5rear CD. Rework Parts a through d of Question 1 using a 6 reareading date.

c. The First National Bank of San Drancisco offers CDa with a 10.0 percent tominal (stated) interest rate but compounded cemiannually. What is the effective annual rate on auch a CD? What would its future value be? d. Pacifie Trust offers 10.0 persent CDs with dally compounding. What is auch a CD'a effective annual rate and its value at maturity? - What mominal rate would the First National Bank have to ofter to malse its semiannual compounding CD competitive with Pacific's daily-eompounding CD? 2. Now conaider a E-year GD. Rework Parts a through d of Question 1 using a E-rear eading date