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Determine equivalent rates to above based on quarterly compounding (3 decimals). Period Rate (i) ________ ________ ________ ________ Notional Annual Rate (j) ________ ________ ________
- Determine equivalent rates to above based on quarterly compounding (3 decimals).
Period Rate (i) ________ ________ ________ ________
Notional Annual Rate (j) ________ ________ ________ ________
Effective Annual Rate (should equal above) ________ ________ ________ ________
- In terms of Effective Annual Rate:
- What is the EAR of a notional rate of 10% compounded annual ly?
- How can EAR be used to provide valuable information?
- Why should EARs calculated for each scenario in question 1 equal the EARs in question 2?
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