Question
The Bank currently offers an investment account with an interest rate of 9% compounded semi-annually. bank wants to offer customers another account with interest compounded
The Bank currently offers an investment account with an interest rate of 9% compounded semi-annually. bank wants to offer customers another account with interest compounded monthly. If bank wants the effective rates to be equal, what interest rate should bank quote for the second account?
8.00% 8.16% 8.83% 7.87%
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Quantitative Financial Analytics The Path To Investment Profits
Authors: Edward E Williams, John A Dobelman
1st Edition
9813224258, 978-9813224254
