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5) An Investor has the opportunity to make an investment that will provide an effective annual yield of 10 percent. She is considering two other
5) An Investor has the opportunity to make an investment that will provide an effective annual yield of 10 percent. She is considering two other investments of equal risk that will provide compound interest monthly and quarterly respectively. What must the equivalent nominal annual rate ( ENAR) be for each of these two investments to ensure that an equivalent annual yield of 10 percent is earned? A. Find the ENAR for 10 % EAY given monthly compounding. B. Find the ENAR fo 10 % EAY given quarterly compounding
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