question archive If the nominal annual rate of interest convertible semiannually is 3
If the nominal annual rate of interest convertible semiannually is 3
Subject:FinancePrice:2.86 Bought11
If the nominal annual rate of interest convertible semiannually is 3.5% find the corresponding equivalent nominal anal rate of discount convertible every 4 months A. 0.068019 B. The answer does not appear her C. 0.034497 D. 0.34547 E 0.034898
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APR(semi-annually) = 3.50%
EAR = (1 + 0.035/2)² - 1 = 3.53%
APR(every 4 months) = 3[(1.0353)¹/³ - 1]
APR(every 4 months) = 0.034898
