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Assume the inflation rate is 3.00% APR, compounded annually. Would you rather earn nominal return of 5.00% APR, compounded semiannually, or a real return of

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Assume the inflation rate is 3.00% APR, compounded annually. Would you rather earn nominal return of 5.00% APR, compounded semiannually, or a real return of 2.00% APR, compounded quarterly? ... To put these on the same basis, you must convert them both to nominal EARS The EAR for 5.00% APR, compounded semiannually is .050625 (Type your answer in decimal format. Round to six decimal places.) The nominal EAR for a real 2.00% APR, compounded quarterly is (Type your answer in decimal format. Round to six decimal places.) You would rather earn the real rate APR compounded quarterly (Select from the drop-down menu.)

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