[Solved] 1. (10) Let a nominal (quoted) interest r

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1. (10) Let a nominal (quoted) interest rate be: I NOM =6%. a. Find I PER for M=2, 4, 12, and 365 (semiannually, quarterly, monthly,

1. (10) Let a nominal (quoted) interest rate be: I_NOM=6%.

a. Find I_PER for M=2, 4, 12, and 365 (semiannually, quarterly, monthly, and daily periodical interest rates, respectively).

b. Find the effective (equivalent) annual rate (EFF%/EAR) for semiannually, quarterly, monthly, and daily compounded rates. Assume I_NOM=6%.

EAR_ANNUAL

EAR_SEMIANNUALLY

EAR_QUARTERLLY

EAR_MONTHLY

EAR_DAILLY

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