Please answer it accurately, fully, and be clear to which the answer.

Time Value of Money: Comparing Interest Rates Different compounding periods, are used for different types of investments. In order to properly compare investments or loans with different compounding periods, we need to put them on a common basis. In order to do this, you need to understand the difference between the nominal interest rate SINOM and the effective annual rate CEAR). The -Select-interest rate is quoted by borrowers and lenders, and it is also called the annual.percentage.rate.APRY the compounding penods for different securities s the same, then you Select: use the APR for compar son. If the secu ties have different compounding per ods, then the Select- must be used for comparison. Here, M is the number of compounding periods per year and INOM/Mis equal to the periodic rate (IPER). If a loan or investment uses-Selectcompounding, then the nominal annual rate is also its effective annual rate. However, if compounding occurs more than once a year, EAR isl-select- 1NOM- uantitative Problem: Bank 1 lends funds at nominal rate of 10% with payments to be made sem iannually. Bank 2 equires payments to be made quarterly. If Bank 2 would like to charge the same effective annual ate as Bank 1 what nominal annual rate will they charge their customers? Round your answer to three decimal places. Do not round intermediate calculations Check My Work (2 remaining)