1. What is the effective rate on a credit card that has a nominal interest rate of 17.99% compounded DAILY (365 days per year)?
2. What is the yield to maturity for a bond with a price of $975.16 if it pays a semi-annual coupon payment in the amount of $26.875 and matures in exactly 11 years?
3. What is the effective rate on a mortgage loan assuming the following:
-The nominal rate is 4.75%
-The loan is paid monthly
-The loan term is 10 years
-The fees are 2.5% and they reduce the actual proceeds you receive.
-Choose any arbitrary loan amount - the answer isn't dependent on the loan size.
ENTER YOUR ANSWER AS A DECIMAL WITH 4 DECIMAL PLACES. For instance - if your answer is 8.99%, you should enter 0.0899.