You recently received a letter from Cut-to-the-Chase Nationa…

You recently received a letter from Cut-to-the-Chase National Bank that  offers you a new credit card that has no annual fee.  It states that the annual  percentage rate (APR) is 17.1 percent on outstanding balances. What is  the effective annual interest rate?  (Hint:  Remember these companies  bill you monthly.)

You observe the following yield curve for Treasury securitie…

You observe the following yield curve for Treasury securities: Maturity             Yield 1 Year                1.00% 2 Years              2.00% 3 Years              2.60% 4 Years              3.00% 5 Years              4.70% Assume that the pure expectations hypothesis holds.  What does the market expect will be  the yield on 4-year securities, 1 year from today?