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Show the effect this would have on interest rates, bond prices, quantity of loans and quantity of bonds? a the government increases the corporate tax rate, which decreases the return on new business investments. B the new us congress and the president come to an agreement on a bill to increase the debt ceiling, thus reducing the risk of a government debt default. C the recent financial crisis and recession makes americans more skeptical of debt and increases the national savings rate, and generally more conscious of the need to think about the future. D a first time home buyer tax credit make is affordable for more families to purchase a house. F federal reserve chairman announces in a press conference that he will implement a new anti inflation program and the financial markets believe that he will follow through on this promise.

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F federal reserve chairman announces in a press conference that he will implement a new anti inflation program and the financial markets believe that he will follow through on this promise. Excel problem: for this problem, you must calculate your answer using excel and upload the spreadsheet. Suppose that on jan 1 you lend $2,500 to a bank deposit $2,500 in a savings account. How much interest will be paid on april 1? what is the new account balance? hint: you will receive only a quarter of the annual interest b. Use the simple interest rate formula: pv fv/ 1+i to calculate the interest rate that you actually received.

Use the simple interest rate formula: pv fv/ 1+i to calculate the interest rate that you actually received. In banking jargon the 4% shown above is called the interest rate and what you are calculating here is called the yield. The difference between the interest rate and the yield is due to compounding that is, how often the interest is paid. Since it is paid in the spring the july interest payment includes interest paid on the april interest.