First National Bank offers two-year CDs at 9.16% compounded daily, and Citywide Savings offers two-year CDs at 9.17% compounded quarterly. Compute the annual yield for each institution. (Round your answers to two decimal places.) FNB % CS %
First National Bank offers two-year CDs at 9.16% compounded daily, and Citywide Savings offers two-year CDs at 9.17% compounded quarterly. Compute the annual yield for each institution. (Round your answers to two decimal places.) FNB % CS %
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A certificate of deposit (CD) is an agreement between a bank and a saver in which the bank guarantees an interest rate and the saver commits to leaving his or her deposit in the account for an agreed-upon period of time.
First National Bank offers two-year CDs at 9.16% compounded daily, and Citywide Savings offers two-year CDs at 9.17% compounded quarterly. Compute the annual yield for each institution. (Round your answers to two decimal places.)
| FNB | % |
| CS | % |
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