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Hello sir
1. In part (b), where did they find yield interest 3% and 4%? Was it an assumption since fixed rate was 3.76% so we took 3% and 4%?2. Why is the percentage given as 3.761/4% ? How will i input it in the calculator?
1. The question simply asks you to illustrate what happens if the interest rates increase or decrease. So to illustrate you can use any two interest rates (provided that obviously one is higher than 3.76% and one is lower).
2. If you divide 1 by 4 on your calculator it equals 0.25. Therefore 3.76 1/4 = 3.7625
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