Assume an effective compound interest rate i = 10% per annum. Compute the following equivalent rates. In each case, enter your answer as a percentage. a) The nominal interest rate payable semi-annually % Enter an answer correct to 4 decimal places. b) The effective interest rate payable quarterly % Enter an answer correct to 2 decimal places. c) The effective rate of discount per annum % Enter an answer correct to 2 decimal places. d) The nominal rate of discount payable monthly % Enter an answer correct to 4 decimal places.
Assume an effective compound interest rate i = 10% per annum. Compute the following equivalent rates. In each case, enter your answer as a percentage. a) The nominal interest rate payable semi-annually % Enter an answer correct to 4 decimal places. b) The effective interest rate payable quarterly % Enter an answer correct to 2 decimal places. c) The effective rate of discount per annum % Enter an answer correct to 2 decimal places. d) The nominal rate of discount payable monthly % Enter an answer correct to 4 decimal places.
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
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Transcribed Image Text:Assume an effective compound interest rate i = 10% per annum. Compute the following equivalent rates.
In each case, enter your answer as a percentage.
a) The nominal interest rate payable semi-annually
%
Enter an answer correct to 4 decimal places.
b) The effective interest rate payable quarterly
%
Enter an answer correct to 2 decimal places.
c) The effective rate of discount per annum
%
Enter an answer correct to 2 decimal places.
d) The nominal rate of discount payable monthly
%
Enter an answer correct to 4 decimal places.
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