What nominal interest rate compounded semi-annually is equivalent to j4 = 11%?

Question

Question

Answer 1

Answer #1

Let the nominal annual interest rate be x

(1+x/2)(1+x/2) - 1 = 0.11

(1+x/2)^2 = 1.11

X/2 = 5.356%

X = 10.713%

Hence, interest rate of 10.713% compounded semi annually will give 11% effective interest rate per annum.

Answer 2

Similar Homework Help Questions

Pepper earns interest at a nominal rate of 8.75% compounded semi-annually. A 0.1% expense is charged...

Pepper earns interest at a nominal rate of 8.75% compounded semi-annually. A 0.1% expense is charged semi-annually to the account immediately after the interest is earned. What annual effective yield is Pepper receiving?
Pepper earns interest at a nominal rate of 8.75% compounded semi-annually. A 0.1% expense is charged...

Pepper earns interest at a nominal rate of 8.75% compounded semi-annually. A 0.1% expense is charged semi-annually to the account immediately after the interest is earned. What annual effective yield is Pepper receiving?
Question 1 What nominal Interest rate compounded semi-annually is equivalent to 1397 Not complete Marked out...

Question 1 What nominal Interest rate compounded semi-annually is equivalent to 1397 Not complete Marked out of 1.00 question Select one: a. 13.86% . b. 13.41% O c. 12.60% O d. 14.34% Save response Question 2 Not complete duto 1.00 A company has a loan that is due on December 30, 2019. At that time they are required to pay $20,000. What was the original amount of the loan if it was taken out on September 30, 2017 at 12%?...

Solve all questions accordingly. Q1. What is the effective annual rate (yield) of 11% compounded monthly? Q2. An interest rate stated as nominal 11% compounded semi-annually is the same as ? per semi-annual . Q3. The yield is 8.16 % for a rate compo

Solve all questions accordingly.Q1. What is the effective annual rate (yield) of 11% compounded monthly?Format : 48.69Q2. An interest rate stated as nominal 11% compounded semi-annually is the same as ? per semi-annual .Format : 7Q3. The yield is 8.16 % for a rate compounding semi-annually. Calculate the nominal interest rate.Format : 7.33Q4. Meidrim has found her dream house. The house price is RM 360000 and the required downpayment is RM 72000. The loan that Meidrim has decided upon will...
Compute the difference in the future amount of P500 compounded semi-annually at nominal rate of 5%...

Compute the difference in the future amount of P500 compounded semi-annually at nominal rate of 5% and if it is compounded continuously both for 5 years at the same rate with solution
3. Park 4.11 A 10-year $1,000 bond pays a nominal rate of 9% compounded semi-annually. If...

3. Park 4.11 A 10-year $1,000 bond pays a nominal rate of 9% compounded semi-annually. If the market interest rate is 12% compounded annually and the general inflation rate is 6% per year, find the actual- and constant-dollar amounts (in time-0 dollars) of the 15th interest payment on the bond.

What nominal interest rate compounded continuously is equivalent to j52 = 14%?

What nominal interest rate compounded continuously is equivalent to j52 = 14%?
What nominal interest rate compounded continuously is equivalent to j52 = 14%?

What nominal interest rate compounded continuously is equivalent to j52 = 14%?
its all one big question. Find the equivalent interest rates to the given nominal interest rates....

its all one big question. Find the equivalent interest rates to the given nominal interest rates. a. Nominal interest rate compounded quarterly that is equivalent to an effective interest rate of 7.5% 0.00 % Round to two decimal places b. Nominal interest rate compounded monthly that is equivalent to 8% compounded quarterly 0.00 % Round to two decimal places c. Nominal interest rate compounded monthly that is equivalent to 6.5% compounded annually 0.00 % Round to two decimal places Brian...

What is the effective annual interest rate equivalent of a nominal rate given as 12% compounded...

What is the effective annual interest rate equivalent of a nominal rate given as 12% compounded quarterly?