- 2 Marks Part B Perform The Following Certificate Of Deposit Calculations I Find The Price Of An 8 Month 375 000 C 1 (76.04 KiB) Viewed 24 times
[2 marks] Part (b) Perform the following certificate of deposit calculations: i. Find the price of an 8 month £375,000 certificate of deposit, paying 2.75%, if it has 2 months remaining to maturity and short term interest rates are also 2.75%. [3 marks] ii. What is its price if short term interest rates increase to 3.15%? [1 mark] iii. Find the price of a 6 month £425,000 certificate of deposit, paying 3.5%, if it has 3 months remaining to maturity and short term interest rates are also 3.5%. [3marks] iv. What rate of return is offered by a 7 month certificate of deposit for £180,000, paying 4% which will mature in 2 months and is currently trading at £179,500? [1 marks] [Total 20 Marks]