The effective annual interest rate is given to be 19.2%. What is the nominal interest rate per year (r) if continuous compounding is being used? Choose the closest answer below. (a) 19.83% (b) 18.55% (c) 17.56% (d) 16.90%

If the compounding frequency is monthly and the discount factor=0.62026, what is the value of the corresponding annual interest rate?  What is the corresponding continuous compounding annual interest rate if the discount factor remains at 0.62026?

Use the continuous compound interest formula to find the indicated value. A= $16,687; P=$10,400; t= 60 months; r= ?

19. Find the Macaulay and Modified durations of an investment that pays $2,000 at the end of year 2 and $3,000 at the end of year 5. Assume a level annual effective interest rate of i = 3%. Be sure to use the correct units for each answer.

3.8 The following table shows the spot rates of interest over a number of horizons: (b) What is the effective rate of interest earned by this annuity-immediate if it were constant through the whole investment period?  [Hint:  Use the Excel function Rate to compute the rate of interest.] Period of investment (in years) Spot rate (in %) 1           6.00 2           7.00 3           7.75 4           8.25