"If the nominal rate is 12% compounded semi-annually, the annual percentage rate is higher than the effective annual rate." TRUE OR FALSE

Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 9MC: Will the effective annual rate ever be equal to the nominal (quoted) rate?
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"If the nominal rate is 12% compounded semi-annually, the annual percentage rate is higher than the effective annual rate."
 
TRUE OR FALSE
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