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On August 26 2018 you invested $100,000 in a six-month Certificate of Deposit paying 2.25%. (A CD's proceeds are the principal plus interest at the
On August 26 2018 you invested $100,000 in a six-month Certificate of Deposit paying 2.25%. (A CD's proceeds are the principal plus interest at the original stated rate.) a) What is its value on September 4 (i.e., how much can you sell it for on Sept 4), assuming rates have 8. not changed? what is its value Sept 4 assuming the relevant market discount rate has increased to 2.5%? b)
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