What is the annualized yield (rounded to three decimal places) on a seven-month U.S. Treasury bill that has a discount yield of 3.95% ? a. 4.042% b. 3.806% c. 3.950% d. 4.099%
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- The domestic currency price of a unit of foreign currency 0.70 and the domestic and foreign risk-free interest rates are 5% and 7% respectively (assume discrete compounding). What is the 18-month forward rate (rounded to the nearest cent)? a. 0.70 b. 0.74 c. 0.68 d. 0.72Compare the annual percentage yield (APY) of loan A, with nominal interest rate 10% and quarterly compounding to loan B, which has nominal interest rate 12% and daily compounding. Round answers to one decimal place. APY Loan A: APY Loan B: I %What is the equivalent effective rate of interest compounded quarterly if the nominal rate is 19.5%? O 20.97% O 21.55% O 19.66% O 18.41%
- Find the effective interest rate (effective annual yield) of an investment that pays 10% per year (quoted or nominal rate) with the interest reinvested quarterly. a. .116 b. .199 c. .104 8 d. 188 The effective interest rate (effective annual vield) is the actual percentage interest paid by the bankThe 6-month US Treasury bill is trading at 98.91% of par while the 1-year US Treasury bill is trading at 97.56% of par. What is the 6 month forward 6 month rate? Please give your answer as an annualized rate and such that if the value is 10.2% you type in 10.2 (not decimal, not 0.102)The nominal interest rate compounded quarterly, ¿(4) is 6%. Let ¿ be the annual effective interest rate, d be the annual effective discount rate, d(12) be the nominal discount rate compounded monthly and be the annual constant force of interest. Calculate i + 2d + 3d(¹2) + 46. A 59.14% B 59.34% C 59.54% D 59.74% E 59.94%
- Find the equivalent interest rates to the given nominal interest rates. a. Nominal interest rate compounded quarterly that is equivalent to an effective interest rate of 8.5% % Round to two decimal places b. Nominal interest rate compounded monthly that is equivalent to 7.5% compounded quarterly % Round to two decimal places c. Nominal interest rate compounded quarterly that is equivalent to 8% compounded annually % Round to two decimal placesIf the effective annual interest rate is 10%, what is the nominal annual rate if compounding is bi- monthly? O a. 10.43% O b. 10.25% O c. 9.76% d. 9.61% e. 10.52%What is the nominal rate if the effective rate is15.32% compounded semi-annually? O 14.39% O 14.69% O 15.81% O 13.67%
- What is the annual percentage yield (APY) for money invested at an annual rate of (A)4.66% compounded monthly? (B)4.67% compounded quarterly? A) What is the annual percentage yield (APY) for money invested at an annual rate of4.66% compounded monthly? The APY is _______ (Type an integer or decimal rounded to three decimal places as needed.) B) What is the annual percentage yield (APY) for money invested at an annual rate of 4.67% compounded quarterly? The APY is _______ (Type an integer or decimal rounded to three decimal places as needed.)Suppose the annualized LIBOR3 is 3.51% and the annualized LIBOR6 is 4.84%. What is the forward forward rate for a LIBOR3 (annualized) deposit to be placed in three months? a. 8.520% b. 4.175% c. 8.350% d. 6.116% e. None of the options in this question are correct.What nominal rate compounded quarterly a principal yield interest that is equivalent to an effective rate of 6%?