Questions
COMM_V 298 201-207 2024W2 Class 4: Valuation and Interest Rates Practice Quiz
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Complete the following calculations: 1: A 12% APR compounded monthly equates to an semi-annual effective rate of: 2: A 10% APR compounded semi-annually equates to an annual effective rate of: 3: An 8% APR compounded annually equates to an monthly effective rate of:
Options
A.6.1520%
B.10.2500%
C.0.6434%
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Step-by-Step Analysis
Starting from the first item, we need to convert the given APR and compounding frequency into the requested equivalent rate.
Option A involves a 12% APR compounded monthly. The monthly rate is 0.12/12 = 0.01. Over six months (a semi-annual period), the ......Login to view full explanationLog in for full answers
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