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a) What is the effective annual rate (EAR or EFF%)? What is the EFF% for a nominal rate of 6%, compounded semiannually? Compounded quarterly? Compounded

a) What is the effective annual rate (EAR or EFF%)? What is the EFF% for a nominal rate of 6%, compounded semiannually? Compounded quarterly? Compounded monthly? Compounded daily?

b) Will the effective annual rate ever be equal to the nominal (quoted) rate?

Show calculation (preferably using excel formula)

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