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Today, your friend Joanna has $500 in her bank account and the effective interest rate is 10% per year (EAR). The risk-free rate is 3%
- Today, your friend Joanna has $500 in her bank account and the effective interest rate is 10% per year (EAR). The risk-free rate is 3% per year (EAR), and the average bond yield (nominal YTM) is 12%. What will her account balance be after one month?
- $504.744
- $503.987
- $502.037
- $501.667
- None of the above.
- $504.744
- $503.987
- $502.037
- $501.667
- None of the above.
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