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You have just purchased a six-month, $680,000 negotiable CD, which will pay a 9.5 percent annual interest rate. a. If the market rate on the
You have just purchased a six-month, $680,000 negotiable CD, which will pay a 9.5 percent annual interest rate.
a. | If the market rate on the CD rises to 10 percent, what is its current market value? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) |
Current market value | $ |
b. | If the market rate on the CD falls to 9.25 percent, what is its current market value? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) |
Current market value | $ |
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