Bank A pays 8 percent interest, compounded quarterly, on its money market account. The managers of Bank
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Bank A pays 8 percent interest, compounded quarterly, on its money market account. The managers of Bank B want its money market account to equal Bank A’s effective annual rate, but interest is to be compounded on a monthly basis. What nominal, or quoted, rate must Bank B set?
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Related Book For 
Corporate Finance A Focused Approach
ISBN: 9780324180350
1st Edition
Authors: Michael C. Ehrhardt, Eugene F. Brigham
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