course id=238532_1&content_id=_811691_1&step=r Remaining Time: 14 minutes, 19 seconds. * Question Completion Status: QUESTION 3 4 The quoted interest rate of following annual cash flow stream is 8% and it is compounded semiannually Note: To receive full credit, show numbers / formulas you used to get your answer(s). 6months periods 0 1 2 3 CFs $20 $20 a. (5 points)What is the effective rate? b. (5 points) What is the value at the end of Year 2? C. (5 points) What is the present value? For the toolbar, press ALT+P10 (PC) or ALT+FN+F10 (Mac). BI y $ Paragraph V Arial M 10pt : ini A 2 You are offered a note that pays $600 in 12 months (or 365 days) for $550. You have $550 in a bank that pays a 4 6 nominal rate, with 365 daily compounding You plan to leave the money in the bank if you don't buy the note. The notes riskle Should you buy it? Why Note: There are three methods to answer this question. You may want to use the easiest method for you to answer the question. You need to show what method you use and numbers to support your answer. Note: To receive full credit, show numbers / formulas you used to get your answer(s) For the toolbar, press ALT+F10(PC) or ALT+FN+F10 (Mac). BI V S Arial Paragraph 10pt E A 2 iii Sve Save and Sub Click Save and Submit to save and submit Chick Save All Antrosove all anners D 0 57F Cloudy a O o IT