Question: In-Class Practice BUS 404 Chapter 2 You have $100 and want to deposit your money in a savings account. The bank provides you the interest
In-Class Practice BUS 404 Chapter 2 You have $100 and want to deposit your money in a savings account. The bank provides you the interest rate information as below: If you deposit the money for n years, n= Annual interest rate provided 5.00% 5.49% A W N 6.00% 6.49% (1) Please draw the corresponding yield curve. Do you think whether the yield curve is normal or not (2) Based on the table, please calculate how much money you can obtain if you deposit your for one year, two years, three years and four years. (3) Please calculate the implied forward rates for Year 2, Year 3 and Year 4
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