Question
Find the present value of $200 due in the future under each of these conditions: 12% nominal rate, semiannual compounding, discounted back 6 years. Do
Find the present value of $200 due in the future under each of these conditions:
12% nominal rate, semiannual compounding, discounted back 6 years. Do not round intermediate calculations. Round your answer to the nearest cent.
12% nominal rate, quarterly compounding, discounted back 6 years. Do not round intermediate calculations. Round your answer to the nearest cent.
12% nominal rate, monthly compounding, discounted back 1 year. Do not round intermediate calculations. Round your answer to the nearest cent.
Why do the differences in the PVs occur?
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Pricing And Hedging Financial Derivatives A Guide For Practitioners
Authors: Leonardo Marroni, Irene Perdomo
1st Edition
1119953715, 978-1119953715
