You have just purchased a three-month, $700,000 negotiable CD, which will pay a 6.5 percent annual...

You have just purchased a three-month, $700,000 negotiable CD, which will pay a 6.5 percent annual interest rate.

a. If the market rate on the CD rises to 7 percent, what is its current market value?
b. If the market rate on the CD falls to 6.25 percent, what is its current market value?

(For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16))

Expert Solution

jeff jeffy answered 1 year ago

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