Author Question: A local bank is offering a zero-coupon certificate of deposit for 25,000. At maturity, three years ... (Read 17 times)

xclash · **on:** Jul 10, 2018

A local bank is offering a zero-coupon certificate of deposit for 25,000. At maturity, three years from now, the investor will receive 32,000. What is the rate of return on this investment?

A) 3 percent
B) 6 percent
C) 9 percent
D) 12 percent

Question 2

The primary economic principle used in managerial finance is ________.

A) purchase power parity
B) asset pricing theory
C) Porter's theory of five forces
D) marginal cost-benefit analysis