1. What can a bank do today to take advantage of expected increase in interest rates?
2. How much is this investment worth at the end of year four? End of year 1.$129 2.$1,160 3.$598 4.$218
3. What is the EAR if the APR is 15 percent compounded monthly? Enter answer as 4 decimals (e.g. 0.1234)
4. Explain (do not use an equation) the concepts of free cash flows and operating cash flows. What do they add to an understanding of corporate performance? How can they be used? 150 words.