A bank offers 7.30% compounded daily. What is is APR (or called ERA, after compounded interest rate) for investors?     7.57%     5.22%     11.67%     10.12%     13%     6.5%     8.11%     9.33%

Q: al rate of interest on a bank account is 2.5% and the general rate of inflation is 4%. b) Using the…

A: Given information :

Q: A bank offers 0.5% effective monthly interest. What is the effective annual rate with monthly…

A: Effective annual interest rate(EAR) refers to the actual interest rate which is received on deposits…

Q: Reserves $ 25 Securities 75 Loans 200

A: Excess reserve  Amount of reserve =   $25 Required (200 X 5%) =$10 Excess amount         =$15

Q: The Wall Street Journal reports that the rate on 5-year Treasury securities is 5.35 percent and the…

A: 5-year treasury securities = 5.35% 6 -year treasury securities = 5.6% 1 - year interest rate…

Q: A $1,000 par value bond that pays interest annually just paid $85.90 in interest. What is the coupon…

A: In the above question we require to compute the coupon rate on a bond where, Par value of bond =…

Q: pays a 9.75% nominal rate on deposits, with monthly compounding. What effective annual rate (EFF%)…

A: The effective annual rate can be computed as follows :- EAR = (1+i / x)^x - 1  = (1 + 0.0975/12)^12…

Q: A Treasury bond that you own at the beginning of the year is worth $1,020. During the year, it pays…

A: Dollar return = Ending value + interest - beginning value Dollar return = $1,030 + 32 - $1,020…

Q: Which of the following bank accounts has the highest effective annual return O a. An account that…

A: The effective annual return or effective annual interest(EAR) is the actual interest paid or earned…

Q: Tommy Corp. can borrow from its bank at 17 percent to take a cash discount.  The terms of the cash…

A: The terms of the cash discount are 3/19, net 45. Discount %age, D = 3%Discount period, DP = 19…

Q: A bank has an average duration of assets (DURa) of 3.6 and an average duration of liabilities (DURl)…

A: Duration gap analysis is a method to calculate changes in the market value of assets, liabilities…

Q: Consider the following Balance Sheet for Forward Thinking Commercial Bank(FTCB) (in millions)…

A: Net Interest Income (NII) Net Interest Income is the difference between the amount of total…

Q: A bank features a savings account that has an annual percentage rate of r = 3.4% with interest…

A: The future value function or concept can be used to determine the future value of a present sum or…

Q: A Treasury bond that you own at the beginning of the year is worth $1,055. During the year, it pays…

A: Dollar return is calculated as: = (Price at end + Dividend) - Price at beginning Percentage return…

Q: What is the amount C of quarterly deposits such that you will be able to withdraw the amounts shown…

A: Given Information: Period  Cash flows 2 $2,500 4 $2,500 6 $2,500 8 $3,500   Rate of…

Q: How much is the principal invested in the bank since a certain amount of money deposited in the bank…

A: Given Number of years (T) = 2 Interest rate (R) = 30% Interest for 2 years = 6,000

Q: Your bank is offering a term deposit that will earn investors an EAR of 10.70%. Your manager asks…

A: EAR stands for the effective annual rate. It is the rate which takes into consideration the impact…

Q: D&G Enterprises issues bonds with a $1,000 face value that make coupon payments of $30 every 3…

A: In the given problem we require to calculate the coupon rate of bond from following given details:…

Q: How long was P30,000 invested at a bond growing at an average rate of 8.25% compounded monthly if…

A: Present value of bond (PV) = P 30,000 Future value of bond (FV) = P 50,000 Annual growth  rate =…

Q: A Treasury note with a 6% coupon, semiannual payments, and par value of $1,000 yields 3.2% and has…

A: When the accrued interest is not included in the bond price, even if the value of bond is between 2…

Q: 8. lan has drawn the below timeline for all the deposits and withdrawals he made to his savings…

A: Time value of money (TVM) refers to the method or concept which is used to determine the amount of…

Q: The small firm wants a 1-year fixed-rate loan. A bank's base rate is 6.14 percent. Adjustment for…

A: Interest rate: The interest rate is the percentage of the amount charged on a principal amount by a…

Q: A 10-year government bond has face value of OR 200 and a coupon rate of 6% paid semiannually. Assume…

A: Hi, since multiple questions are posted, I will answer the first one as per the guidelines. Please…

Q: Jse the following balance sheet and find the effect on net interest income if the interest on ncome…

A: The net effect of interest rate change on the net interest income is the difference between the…

Q: Consider the following Balance Sheet for Cutting Edge Commercial Bank(CECB) (in millions)   ASSETS…

A: Given Information : Balance sheet for Cutting Edge Commercial Bank (CECB) ASSETS ($) LIABILITIES…

Q: A corporate bond that you own at the beginning of the year is worth $915. During the year, it pays…

A: A CORPORATE BOND IS A DEBT ISSUED BY A COMPANY IN ORDER TO RAISE CAPITAL .   CAPITAL GAIN  : = VALUE…

Q: Treasury bills are currently paying 6 percent and the inflation rate is 2.6 percent. (Round the…

A: Approximate and extract real rate can be calculated by using these equations. Approximate real rate…

Q: t is now January 1, 2x16, and you will need P100,000 on January 1, 2x20. Your bank compounds…

A: The value of money would possibly change with time. The money that is received at present will have…

Q: 4- Bank America offers a stated annual interest rate of 5.0 percent, compounded quarterly, while…

A: To understand in which bank you should deposit your money, we need to calculate Effective interest…

Q: A bond pays $10,000 per year for the next 10 years. The bond costs $90,000 now. Inflation is…

A: Given, Bond pays 10,000 / year for 10 years. Cost of bond = $90,000 Inflation = 6% for 10 years

Q: f the interest that 6000 TL will bring in 3 months over 21% interest rate is brought by the same…

A: Simple Interest: When at the time of returning the loan to the bank, we have to pay back an amount…

Q: In the example below, we will use year-end assets. Bank A receives $70 in deposits at 5% and,…

A: Calculate the G bond value by using the following formula: Total assets = Total equity and deposits…

Q: A bank pays interest at the nominal rate of 3.8% per year. Find the following effective yields.…

A: Interest is the cost of borrowing the money.

Q: A $4000, 6% bond is sold at 93. When the bond is issued, the Cash account will be increased by…

A: 1. Cash account will increase by = Face value of bonds x issue price / 100 = $4000 x 93/100 = $3720…

Q: assume bank accepts a 6-month $20,000 rate sensitive deposit at a cost of 4.0% and invest in a…

A: Computation of the amount that the bank has to pay:Principal=$20000Rate=4.0%Time=6 monthsAmount of…

Q: T\vo banks offer the following interest rates on your deposit:• Bank A : 9% interest compounded…

A: Statement A is not true and all other statements are true.

Q: Treasury bills with a nominal value of TL 1.000, which are 280 days to maturity, to 867 What is the…

A: Annual interest rate = [(Nominal value - purchase price)/purchase price] x 365/260

Q: The bank is paying 6.68% compounded annually. The inflation is expected to be 15.22% per year. What…

A: Inflation is the increase in the general price levels. It reduces the purchasing power of money.

Q: A 3 month $19,000 treasury bill with a simple annual discount rate of 0.27% was sold in 2016. Assume…

A: Given information: Simple annual discount rate is 0.27% Principal amount is $19,000 Time period is 3…

Q: Elliott Credit Corp. wants to earn an effective annual return on its consumer loans of 14.2 percent…

A: given, EAR= 14.2%M = 365

Q: XYZ Corporation invests $450,000 into 91-day treasury bills with an interest rate of 1.54%. If the…

A: Here, Amount invested in Treasury bills = $450,000 Duration = 91 days Interest rate = 1.54% Broker…

Q: A bank offers an APR of 3.25% compounded semiannually.Find the annual percentage yield (APY). 3.28%…

A: APR = 3.25% Compounded Semi annually Interest rate for semiannual period(r) = 3.25%/2 = 1.625%…

Q: Consider the following Balance Sheet for Forward Thinking Commercial Bank(FTCB) (in millions)…

A: Net Interest Income  Net Interest Income is the difference between the amount of total mortgagee /…

Q: A bank charges interest rate of 5.50% on loans. The interest rate compounds monthly. What is the…

A: Effective Annual Rate: The effective yearly rate is the interest rate that is in effect for the…