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HWK: Re-do Ex. 2.3 assuming quarterly compounding. Instructive query: Intuitively should we expect the resulting PV to be higher or lower than the previous answer?

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HWK: Re-do Ex. 2.3 assuming quarterly compounding. Instructive query: Intuitively should we expect the resulting PV to be higher or lower than the previous answer? Ans: Since discounting takes place less frequently, we would expect the PV to be (w/quarterly frequency). 1 3*4 1+ (0049) 0.05 4 * PV = $5k Quarterly 5k * IL

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