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Paragraph F date. Please sign in as IR******@ma******.edu so we can verify your subscription. Styles Sign In 6) You want to earn an EAR of
Paragraph F date. Please sign in as IR******@ma******.edu so we can verify your subscription. Styles Sign In 6) You want to earn an EAR of 12.682%. Therefore, you would pick an investment with a quoted interest rate of APR with monthly compounding: A) 12.30% B) 12.68% C) 12.00% D) 12.28% E) None of the above 7) The manager of Furniture For Less has approved Mac's application for 36 months of credit with maximum monthly payments of $32. If the APR is 20.2 percent with monthly compounding, what is the maximum initial purchase that Mac can buy on credit? A) $627.53 B) $1,047.91 C) $858.70 D) $870.58 E) $617.19 8) Of these choices, a risk-seeking investor would be most apt to invest in: A) 5-year, 7 percent coupon bonds. B) 20-year, 6 percent coupon bonds. C) 20-year, zero coupon bonds. D) 2-year, 7 percent coupon bonds. E) 3-year, zero coupon bonds. 9) If Treasury bills are currently paying a nominal rate of 3.0500 percent and a real rate of 1.5135 percent what is the approximate rate of inflation? The exact rate of inflation? A) 1.5365 percent; 1.5560 percent
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