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an interest rate is 4% per annum with continuous compounding. what is the equivalent rate with semiannual compounding?
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- If the nominal rate of interest is 10% per annum and there is quarterly compounding, the effective rate of interest will be:An interest rate is quoted as 4% per annum with quarterly compounding. What is the equivalent rate with (a) annual compounding (b) monthly compounding (c) continuous compoundingif the nominal rate is 11.5% per year compounded continuously, what is the equivalent effective rate of interest per two years?
- A KIMEP BANK quotes you and interest rate of 12,5% per annum with semiannual compounding. What is the equivalent rate with annual compounding and continuous compounding? Choose the right answer: a. The rate with annual compounding is 12.89% and the rate with continuous compounding is 12.12% b. The rate with annual compounding is 12.12% and the rate with continuous compounding is 9.57% c. The rate with annual compounding is 10.28% and the rate with continuous compounding is 12.89% d. The rate with annual compounding is 10.38% and the rate with continuous compounding is 12.12%A nominal interest rate of 11.333%, continuously compounded, yields an effective annual interest rate of how much?If the effective interest rate is 20% per annum, what is the Nominal Rate if it is? a.Compounded Daily (360 Days) b.Compounded Daily (365 Days) c.Compounded Weekly d.Compounded Monthly e.Compounded Quarterly f.Compounded Semi-Annually g.Compounded Annually
- If the compounding frequency is monthly and the discount factor=0.62026, what is the value of the corresponding annual interest rate? What is the corresponding continuous compounding annual interest rate if the discount factor remains at 0.62026?For any given interest rate, ________compounding will yield the highest effective annual rate. a) annual b) monthly c) daily d) continuous e) semiannualIf the effective annual interest rate is 8%, what is the nominal annual rate if compounding is bi-monthly?
- a. For an interest rate of 18% per year compounded continuously, calculatethe effective monthly and annual interest rates.b. An investor requires an effective return of at least 15%. What is the minimum annual nominal rate that is acceptable for continuous compounding?The discount factor corresponding to a 3-year continuously compounded interest rate is 0.765667. What is the corresponding continuously compounded interest rate? What is the corresponding quarterly compounded interest rate expressed at an annual rate?An interest rate of 10% compounded semianually is equivalent to how many percent compounded quarterly?