Simple interest on its investment accounts

Assignment Help Financial Management

Reference no: EM131810899

First Simple Bank pays 8.2 percent simple interest on its investment accounts. If First Complex Bank pays interest on its accounts compounded annually, what rate should the bank set if it wants to match First Simple Bank over an investment horizon of 10 years? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Interest rate %

Reference no: EM131810899

Questions Cloud

Find predicted compensation and residual prediction error : Find the predicted compensation and the residual prediction error for the CEO of Netflix, expressing both quantities in dollars.

Reduce firm potential financial distress : Explain how hedging can i) reduce firm’s potential financial distress, and ii) alleviate firm’s underinvestment problem.

Identify the global societal problem : Identify the global societal problem within the introductory paragraph and conclude with a thesis statement that states your proposed solutions to the problem.

Market values for debt and equity : It has issued 12,500 bonds with a face value of 1000, 15 years left to maturity, semiannual compounding, a coupon interest rate of 6%.

Simple interest on its investment accounts : First Simple Bank pays 8.2 percent simple interest on its investment accounts.

What is the firm cost of capital : A firm has 60,000 shares whose current price is $45.90. Those stockholders expect a return of 14%. The firm has a 3-year loan of $1,900,000

Financial planner offers you two different investment plans : Your financial planner offers you two different investment plans. Plan X is a $10,000 annual perpetuity. Plan Y is a 12-year, $20,000 annual annuity.

Determining the fund capital projects : What is the university's cost of capital? Note that only the interest on the endowment is available to fund capital projects.

What is the yield to maturity at current market price : What is the yield to maturity at a current market price of $765? What is the yield to maturity at a current market price of $1,083?

User Account

All Pages