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WDC Bank lends $20,000,000 to Foggy Bottom Bank at the single payment yield of 1.5% for 14 days in Federal Funds market. How much will
WDC Bank lends $20,000,000 to Foggy Bottom Bank at the single payment yield of 1.5% for 14 days in Federal Funds market. How much will WDB Bank be paid at maturity? A. "$20,002,917" B. $20,005,833 C. $20,007,778 D. $20,015,556 E. $20,011,667 QUESTION 9 You purchase a principal STRIP (or stripped principal) maturing in three years. Calculate the market value of the security for $100 par value using the following one year forward rates. (tFn is the forward rate of a n-year forward contract that starts at t.) 1 F1 = 2.25% 2F1 = 2.50% 3F1 = = 3.00% A. $92.64 OB. $93.18 C. $94.93 OD. $94.05 E. $91.60
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