1.1) Find the EAR in each of the following cases: Stated rate (APR)  # of times per year  Effective rate (EAR) 7.8% 4   15.3% 12   12.4% 365   11.4% Infinite     A) Calculate the EAR.

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
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1.1) Find the EAR in each of the following cases:

Stated rate (APR)

 # of times per year

 Effective rate (EAR)

7.8%

4

 

15.3%

12

 

12.4%

365

 

11.4%

Infinite

 

 

A) Calculate the EAR.

 

 

1.2)  APR, or stated rate, in each of the following cases:

Stated rate (APR)

Number of Times Compounded

 Effective rate (EAR)

 

Semiannually

14.2%

 

Monthly

18.4%

 

Weekly

11.1%

 

Infinite

8.9%

 

A) Calculate the APR.

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