1. You have found three investment choices for a one-year deposit: 9.5% APR compounded monthly, 9.5% APR compounded annually, and 8.6% APR compounded daily. Compute the EAR for each investment choice. (Assume that there are 365 days in the year.) (Note: Be careful not to round any intermediate steps less than six decimal places.)
2. In IPO market, a phenomenon called, “leaving money on the table,” is common. Describe the phenomenon by googling. Is it good for the IPO issuing company? Why or why not?