A 365-Day Year Bank Certificate of Deposit Has an Initial

question 37

Multiple Choice

A 365-day year bank certificate of deposit has an initial principal amount of uSd 96.5 million and a redemption amount due at maturity of uSd 100 million. The number of Days between settlement and maturity is 350. The bond equivalent yield is closest to:

• A) 3.48%.
• B) 3.65%.
• C) 3.78%.

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Definitions:

Demand Increased

A situation where the desire to purchase goods and services at a given price level rises, leading to higher quantity demanded.

Wage Rate

The standardized amount of pay that a worker receives for performing a certain job or task, typically expressed per hour or unit of work.

Retail Market

The part of the economy that deals with the sale of goods or services directly to consumers, encompassing a wide range of businesses and stores.

OPEC Nations

Member countries of the Organization of the Petroleum Exporting Countries, a group that coordinates the petroleum policies of its members to secure fair and stable prices for petroleum producers.