A bank has issued a three$-$month, $$1$ million negotiable CD with a $0\mathrm{.}25$ percent quoted annual interest rate $($iCD$,$ sp$).$

Note: Use $365$ days in a year. Do not round intermediate calculations.

Round your percentage answers to $3$ decimal places. $($e$.$g$.,32\mathrm{.}161)$

a$.$Calculate the bond equivalent yield and the EAR on the CD$.$

Bond Equivalent Yield

$\%$

EAR:

b$.$ How much will the negotiable CD holder receive at maturity?

Money Received: $

c$.$ Immediately after the CD is issued; the secondary market price on the $$1$ million CD falls to $$999,500.$ Calculate the new secondary market

quoted yield, the bond equivalent yield, and the EAR on the $$1$ million face value CD$.$

Secondary Market Quoted Yield:

BEY:

$\%$

EAR

$\%$