Problem 16-20 please. Don`t need a solution, answers only.

Bank offers to lend you exist100,000 at a nominal rate of 6%, compounded monthly. The loan (principal plus interest) must be repaid at the end of the year. Bank B also offers to lend you the exist100,000, but it will charge 6.30%, with interest due at the end of the year. What is the difference in the effective annual rates charged by the two bands? After graduation, you plan to work for Chelmsford Inc. for 12 years and then start your own business. You expect to save and deposit exist8,000 a year for the first 6 years (t = 1 through t = 6) made a year from today. In addition, your grandfather just gave you a exist20,000 graduation gift which you will deposit immediately (t = 0). If the account earns 9% compounded annually, how much will you have when you start your business 12 years from now? a. exist252, 176 b. exist258, 712 c. exist263, 418 d. exist277, 566 e. exist291, 320 Assume that 1-year T-bills currently yield 5,00% and the suture inflation rate is expected to be constant at 1.5% per year. What is the real risk-free rate of return, r*? a. 6.50% b. 5.00% c. 4.50% d. 4.00% e. 3.50% Suppose 10-year T-bonds have a yield of 5.00% and 5.00% and 10-year corporate bonds yield 6.50%. Also, corporate bonds have A 0.30% liquidity premium versus a zero liquidity premium for T-bonds, and the maturity risk premium on both treasury and corporate 10-year bonds is 1.20%. What is the default risk premium on corporate bonds? a. 1.10% b. 1.20% c. 1.30% d. 1.40% e. 1.50% Suppose the interest rate on a 2-year T-bonds is 7.0% and that on a 3-year T-bond is 8.0%. Assuming the pure expectations theory is correct, what is the market's forecast for 1-year rates 2 year from now? a. 7.36% b. 7.75% c. 8.16% d. 9.01% e. 10.03%