Question
To determine the semi-annual effective rate equivalent to a semi-annual quarterly capitalization rate, the following is due: A. Square the square root of the nominal
To determine the semi-annual effective rate equivalent to a semi-annual quarterly capitalization rate, the following is due:
A. Square the square root of the nominal plus one
B. Square the nominal rate
C. Divide the nominal by two; second, square it and subtract one
D. Divide the nominal by two and square the capitalization rate plus one and then subtract one
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Essentials of Investments
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
10th edition
77835425, 978-0077835422
