a. IMB Bank offers a personal loan that will require you to pay 22.45% per annum, compounded quarterly. What is the effective annual rate charged by the bank? (round the final outcome to 2 decimal places)
B. Penelope wishes to leave a provision in her will that $26,000 will be paid annually in perpetuity to Save the Children. How much must she provide in her will for this perpetuity if the interest rate is 4.88% per annum? (round to 2 decimal places) Show workings
C. Using the Bond theorem, explain how the interest rate rise contributed to the Silicon Valley Bank (SVB) collapse in 2023.