End the effective bimonthly interest rate equivalent to:a) nominal annual interest of 8%, compounded 6 times per year;Answer =%.b) nominal annual discount of 4%, compounded quarterly;Answer =%.c) nominal annual interest of 3%, compounded continuously;Answer =%.

Effective annual rate=1+rmm-1where,r=rate of interestm= frequency of compounding

Answered: End the effective bimonthly interest…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 7P

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End the effective bimonthly interest rate equivalent to: a) nominal annual interest of 8%, compounded 6 times per year; Answer = %. b) nominal annual discount of 4%, compounded quarterly; Answer = %. c) nominal annual interest of 3%, compounded continuously; Answer = %.