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Suppose Bank X offers you an account with a nominal rate of 3% with semiannual compounding. Bank Y has the same effective annual rate as

Suppose Bank X offers you an account with a nominal rate of 3% with semiannual compounding.

Bank Y has the same effective annual rate as Bank Xs effective rate, but interest will be compounded monthly.

-Find the EAR for Bank X

-Find the nominal rate for Bank Y

-Which Bank offers you a better deal ?

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