Today, your friend Joanna has $500 in her bank account and the effective interest rate is...
- Today, your friend Joanna has $500 in her bank account and the
effective interest rate is 10% per year (EAR). The risk-free rate
is 3% per year (EAR), and the average bond yield (nominal YTM) is
12%. What will her account balance be after one month?
- $504.744
- $503.987
- $502.037
- $501.667
- None of the above.
Homework Answers
monthly return
=((1+10%)^(1/12))-1
=0.7974%
What will her account balance be=500*(1+0.7974%)=503.987
the above will be answer..
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