Like cash flows, the interest rate can also be compounded over time. When compounding the interest rate we are simply accounting for the interest being earned on interest over a time period. One example of the computation of an annual compounded or effective interest rate is associated with your credit card. You recently received a letter from a local bank that offers you a new credit card that has no annual fee. It states that the annual percentage rate (APR) is 15 percent on outstanding balances. Note that the annual percentage rate does not account for compounding, rather the APR is simply the periodic rate times the number of periods. What is the effective annual interest rate? (This rate is subject to monthly compounding.)

One question from a survey was "how many credit cards do you currently have? " the results of the survey are provided. complete parts (a) through (g) below. click the icon to view the survey results. (a) determine the mean number of credit cards based on the raw data. the mean is 3.113.11 credit cards. (type an integer or a decimal. do not round.) (b) determine the standard deviation number of credit cards based on the raw data. the standard deviation is 1.9111.911 credit cards. (round to three decimal places as needed.) (c) determine a probability distribution for the random variable, x, the number of credit cards issued to an individual. x (# of cards) p(x) x (# of cards) p(x) 1 0.280.28 6 nothing 2 nothing 7 nothing 3 nothing 8 nothing 4 nothing 9 nothing 5 nothing 10 nothing (type integers or decimals. do not round.)

An instance where sellers should work to keep relationships with customers is when they instance where selllars should work to keep relationships with customers is when they feel that the product

Bonds often pay a coupon twice a year. for the valuation of bonds that make semiannual payments, the number of periods doubles, whereas the amount of cash flow decreases by half. using the values of cash flows and number of periods, the valuation model is adjusted accordingly. assume that a $1,000,000 par value, semiannual coupon us treasury note with three years to maturity has a coupon rate of 3%. the yield to maturity (ytm) of the bond is 7.70%. using this information and ignoring the other costs involved, calculate the value of the treasury note: