Question
14. If 16% pa is an annual percentage rate (APR) compounding every quarter, which of the following is NOT correct? All percentages are given to
14. If 16% pa is an annual percentage rate (APR) compounding every quarter, which of the following is NOT correct? All percentages are given to 5 decimal places.
a.
Continuously compounded semi-annual rate is 7.84414% per half year.
b.
Continuously compounded quarterly rate is 3.92207% per quarter.
c.
The annual percentage rate (APR) compounding every month is 15.79128%.
d.
Effective quarterly rate is 4.00000% per quarter.
e.
Effective monthly rate is 1.84756% per month.
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Handbook Of Financial Risk Management
Authors: Thierry Roncalli
1st Edition
1138501875, 978-1138501874
