Question
Bank A pays 8% interest, compounded quarterly, on its money market account. The managers of bank B want its money market accounts effective annual rate
Bank A pays 8% interest, compounded quarterly, on its money market account. The managers of bank B want its money market accounts effective annual rate to equal that of Bank A, but Bank B will compound interest on a monthly basis. What nominal, or quoted, rate must bank B set?
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Risk Sensitive Investment Management
Authors: Mark H A Davis, Sébastien Lleo
1st Edition
9814578037, 978-9814578035
