question archive 1)Which of the following are typical negotiable certificate of deposit (NCD) denominations? Check all that apply
1)Which of the following are typical negotiable certificate of deposit (NCD) denominations? Check all that apply
Subject:FinancePrice: Bought3
1)Which of the following are typical negotiable certificate of deposit (NCD) denominations? Check all that apply.
-$300,000
-$900,000
-$1,000,000
-$4,000,000
2)Which of the following are characteristics of negotiable certificates of deposit (NCD)? Check all that apply.
-Their denominations are typically in multiples of $100,000.
-Their maturities are normally between 2 weeks and 1 year.
-Activity in their secondary market is moderate.
-They provide a return in the form of interest along with the difference between the secondary market selling price and the original purchase price.
3.Suppose Nick purchased an NCD a year ago on the secondary market for $993,000 and redeems it today upon maturity for $1,000,000 plus $44,000 in interest. The annualized yield on this NCD is:
-4.63%
-5.04%
-5.14%
-5.40%
