Question 314340
{{{C=21000}}}
{{{B=10500}}}
{{{Rc=Rb+0.01}}}
{{{Ic=Ib+840}}}
.
.
.
{{{C*Rc=Ic}}}
{{{21000*Rc=Ic}}}
.
.
{{{10500*Rb=Ib}}}
Substitute,
{{{Ic=Ib+840}}}
{{{21000*(Rb+0.01)=10500*Ib+840}}}
{{{21000Rb+210=10500*Rb+840}}}
{{{10500Rb=630}}}
{{{Rb=63/1050}}}
{{{Rb=0.06}}}
{{{Rc=Rb+0.01}}}
{{{Rc=0.07}}}
The CD rate is 7% and the bond rate is 6%.