No tables, ONLY formulas, please, correct answers; (i) ?^(4) = 0.049383??, (ii) ?^(4) = 0.03011??, (iii) ?^(4) = 0.079205 ??, (iv) ?^(4) = 0.39223
No tables, ONLY formulas, please, correct answers; (i) ?^(4) = 0.049383??, (ii) ?^(4) = 0.03011??, (iii) ?^(4) = 0.079205 ??, (iv) ?^(4) = 0.39223
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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No tables, ONLY formulas, please,
correct answers; (i) ?^(4) = 0.049383??, (ii) ?^(4) = 0.03011??, (iii) ?^(4) = 0.079205 ??, (iv) ?^(4) = 0.39223 ?
Transcribed Image Text:Calculate, to 5 decimal places, the nominal rate of discount per annum convertible quarterly
that is equivalent to:
(i)
a nominal rate of interest of 5% per annum convertible quarterly;
(ii)
(iii)
(iv)
a nominal rate of discount of 3% per annum convertible half-yearly;
a force of interest of 2% per quarter year
an effective rate of interest of 3.5% per month
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