Calculate the new secondary market quoted yield

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Reference no: EM133910272

Problem

A bank has issued a six-month, $2 million negotiable CD with a 0.52 percent quoted annual interest rate (iCD, sp). Immediately after the CD is issued, the secondary market price on the $2 million CD falls to $1,998,750. Get the instant assignment help. Calculate the new secondary market quoted yield, the bond equivalent yield, and the EAR on the $2 million face value CD.

Reference no: EM133910272

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