QUESTION 4 1 pc Riverside Bank offers to lend you $50,000 at a nominal rate of 6.5%, compounded monthly. The loan (principal plus interest) must be repaid at the end of the year. Midwest Bank also offers to lend you the $50,000, but it will charge an annual rate of 6.2%, with no interest due until the end of the year. How much higher or lower is the effective annual rate charged by Midwest versus the rate charged by Riverside a.-0.5196 b.-0.50% c.0.559 d. -0.6296 e. -0.4196 QUESTION 5 1 p Suppose a State of New York bond will pay $1,000 ten years from now. If the going interest rate on these 10-year bonds is 3.1%, how much is the bond worth today? 3. 5840.08 b. 714.80 c. $736.91 d. 5817.97 e. 5869.55 QUESTION 6 1 p The greater the number of compounding periods within a year, then (1) the greater the future value of a lump sum investment at Time O and (2) the greater the present value of a given lump sum to be received at some future date. True False