The bank is offering to sell 6-month certificates of deposit for $9800. At the end of 6 months, the bank will pay $10,000 to the certificate owner. Compute the nominal annual interest rate can you explain how we get the value m=2 in the nominal annual interest rate i=r/m
The bank is offering to sell 6-month certificates of deposit for $9800. At the end of 6 months, the bank will pay $10,000 to the certificate owner. Compute the nominal annual interest rate can you explain how we get the value m=2 in the nominal annual interest rate i=r/m
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 26P
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The bank is offering to sell 6-month certificates of deposit for $9800. At the end of 6 months, the bank will pay $10,000 to the certificate owner. Compute the nominal annual interest rate
can you explain how we get the value m=2 in the nominal
annual interest rate i=r/m
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