Question
Assume the inflation rate is 2.45% APR, compounded annually. Would you rather earn a nominal return of 5.22% APR, compounded semiannually, or a real return
Assume the inflation rate is 2.45% APR, compounded annually. Would you rather earn a nominal return of 5.22% APR, compounded semiannually, or a real return of 2.86% APR, compounded quarterly? To put them on the same basis, convert to EARs.
A. The EAR for the 5.22% APR, compounded semianually is? (Round to six decimals)
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Research In Finance Volume 24
Authors: Andrew H. Chen
1st Edition
0762313773, 978-0762313778
