subject
Business, 19.02.2020 18:16 anggar20

You are given the following data on different rates with the same maturity (1.5 years), but quoted on a different basis and different compounding frequencies:

• Continuously compounded rate: 2.00% annualized rate

• Annually compounded rate: 2.10% annualized rate

• Semi-annually compounded rate: 2.01% annualized rate

You want to find an arbitrage opportunity among these rates. Is there any one that seems to be mispriced?

ansver
Answers: 1

Another question on Business

question
Business, 22.06.2019 17:30
One of your new suppliers, kim, has been hearing rumors about your firm’s lack of capability to deliver high quality products and writes an email asking you to address the claims being made. in replying to her, you want to be sure that you are very clear and leave no room for misinterpretation. which of the following aspects of effective communication should you give the most attention? (a) making sure you understand kim’s areas of expertise. (b) supporting your reply with relevant data and facts. (c) establishing your credibility as an expert. (d) paying attention to implied communications.
Answers: 2
question
Business, 22.06.2019 20:00
Lillypad toys is a manufacturer of educational toys for children. six months ago, the company's research and development division came up with an idea for a unique touchscreen device that can be used to introduce children to a number of foreign languages. three months ago, the company produced a working prototype, and last month the company successfully launched its new device on the commercial market. what should lillypad's managers prepare for next? a. increased competition from imitators b. a prolonged period of uncontested success c. a sharp decline in demand for the product d. a difficult struggle to move from invention to innovation
Answers: 2
question
Business, 22.06.2019 20:40
Helen tells her nephew, bernard, that she will pay him $100 if he will stop smoking for six months. helen was hopeful that if bernard stopped smoking for six months, he would stop altogether. bernard stops smoking for six months but then resumes his smoking. helen will not pay him. she says that the type of promise she made cannot constitute a binding contract and that, furthermore, it was at least implied that he would stop smoking for good. can bernard legally collect $100 from helen
Answers: 1
question
Business, 22.06.2019 22:00
What tax is paid by the most people in the united states
Answers: 1
You know the right answer?
You are given the following data on different rates with the same maturity (1.5 years), but quoted o...
Questions
question
Mathematics, 31.01.2020 10:50