Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
You can use the above formula to answer questions here I think its epr finding not totally sure
If the stated annual rate of interest compounded semi-annually is 12.5% then what is the equivalent:
a) Semi-annual rate compounded semi-annually
b) Annual rate compounded quarterly
c) Annual rate compounded continuously
d) 30 day rate compounded every 30 days
e) Annual rate compounded weekly (use n = 7/365)
Transcribed Image Text:1st: EAR= (1+r/m)™ − 1
EPR=(1+EAR)(1/s) – 1
2nd:
Or:
EPR = (1+r/m)(m/s) – 1
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