Because of new trade agreements that have been recently signed, only a few countries still control the movement of goods crossing their borders rigidly.

$1 million is invested at 6% for 10 years. How much additional proceeds is earned if the rate is compounded semi-annually compared to simple interest?

a) $600,000 b) $190,848 c) $1,790,848 d) $1,190,848 e) $206,111

The term structure of interest rates represents the relationship between which of the following?

A. Nominal rates on risk-free and risky bonds B. Real rates on risk-free and risky bonds C. Nominal and real rates on default-free, pure discount bonds D. Market and coupon rates on default-free, pure discount bonds E. Nominal rates on default-free, pure discount bonds and time to maturity