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Construct a spreadsheet to convert a nominal interest rate compounded m times per year i (m) and convert it to an effective rate j n
Construct a spreadsheet to convert a nominal interest rate compounded m times per year i(m) and convert it to an effective rate jn per 1/n of a year. On the same spreadsheet, also start with an effective rate jm per 1/m of a year and convert it to a nominal rate i(n) compounded n times per year. Use your spreadsheet to solve the following two problems:
a. Given the nominal rate i(4) = 8.950%, find the equivalent effective weekly rate.
b. Given the effective weekly rate j52 = 0.170%, find the equivalent nominal rate i(4).
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