Calculate the nominal rate of interest per annum convertible half-yearly that is equivalent to: (i) (iii) an effective rate of discount of 0.5% per month a nominal rate of discount of 6% per annum convertible every 2 years a nominal rate of interest of 6% per annum convertible quarterly

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
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answers;   i) i^(2)= 0.061064pa.      ii) i^(2)= 0.064949pa.      iii) i^(2)= 0.06045pa

Calculate the nominal rate of interest per annum convertible half-yearly that is equivalent
to:
(i)
(ii)
(iii)
an effective rate of discount of 0.5% per month
a nominal rate of discount of 6% per annum convertible every 2 years
a nominal rate of interest of 6% per annum convertible quarterly
Transcribed Image Text:Calculate the nominal rate of interest per annum convertible half-yearly that is equivalent to: (i) (ii) (iii) an effective rate of discount of 0.5% per month a nominal rate of discount of 6% per annum convertible every 2 years a nominal rate of interest of 6% per annum convertible quarterly
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