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- If the stated annual interest rate is 11% and the frequency of compounding is daily, the effective annual rate is closest to:A. 11.00%.B. 11.57%. C. 11.63%. uSE ECXELThe 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?A fixed income instrument with a stated annual interest rate of 18% and offers monthly compounding has an effective annual rate (EAR) closest to:A. 18.00%.B. 19.56%. C. 20.12% Use excel
- A nominal interest rate of 11.333%, continuously compounded, yields an effective annual interest rate of how much?Which of the following has the most effective annual rate of interest? A. 12.50 % compounded annually B. 11.95% compounded quarterly C. 12.15% compounded semi-annually D. 11.88% compounded monthlyThe following CFDs are equivalent to each other. Calculate the value of A if the interest rate is 7% 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?Which one of the following represents the highest effective interest rate per year? Select one: O a. 10.5% per year, compounded semiannually Ob. 10.4% per year, compounded daily O c. 10% per year, compounded quarterly O d. 10% per year, compounded monthly O e. 9.8% per year, compounded continuouslySuppose S500 is invested at 4% compounded quarterly. (a) How long will it take the investament to accumulate to $750 if the exact method for accumulation is in effect? (b) How long will it take the investment to accumulate to $750 if the practical method for accumulation is in effect? Be sure to us linear interpolation! (e) What anmual effective interest rate must 8500 be invested at to accumulate to S750 in 10 years?
- 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?Compute for the effective quarter interest rate if nominal rate is 3.02% compounded semi-annual.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 compounding