A life insurance company pays investors 5% compounded annually on its five-year GICs. For you to be

Question:

A life insurance company pays investors 5% compounded annually on its five-year GICs. For you to be indifferent as to which compounding option you choose, what would the nominal rates have to be on GICs with:
a. Semiannual compounding?
b. Quarterly compounding?
c. Monthly compounding?

Fantastic news! We've Found the answer you've been seeking!