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OSU evaluated sealed bids on two financial packages for the construction of the Men's Basketball...

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Finance

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OSU evaluated sealed bids on two financial packages for the construction of the Men's Basketball Field & Stadium located off North Washington Street. The first bid was from Citibank Lending, followed by CapEx Financial. Each institution claims their rates were the best available for the new baseball facility. Answer the next two questions based on ht information below. (NOTE: For financial purposes, assume 52 weeks per year and 365 days per year). Effective Annual Interest Rate Equation: Jeff = (1 +r/m)" -1. Citibank Lending: CapEx Financial: Bid #1: 1.75% per quarter, compounded weekly. Bid #2: 6.0% per semiannual, compounded daily. (a) Calculate the effective annual interest rate for Bid #1 - Citibank Lending. (b) Calculate the effective annual interest rate for Bid #2 - CapEx Financial

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