Question

The two-year interest rate of 30 34% is equal to what nominal rate of interest convertible quarterly? A. The answer does not appear here B.3.41% C.5.738% OD. 13.63% E. 13.71%

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Answer 1

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1 Alle 9 V - L 19:47 ENG 19 01 2020 x W BN119 fx - BN Formula Bar BO BP BQ BR Mua Bar BS BT BUBV B W B X BY BZ - 2 YEAR INTEREST RATE = 30.75% 100 101 102 103 30.75% = (1+r)^2 - 1 0.3075 = (1+r)^2 - 1 1.3075 = (1+r)^2 1.3075^(1/2) = (1+r)^2 1.143459663 = (1+r) 0.143459663 = r 14.35% now we need nominal rate, which is convertible quarterly, which is = 14.35% 0.143459663 = (1+(r/4))^4 - 1 1.143459663 = (1+(r/4))^4 1.143459663^(1/4) = (1+(r/4)) 1.034082556 = (1+r/4)) 114 0.034082556 = r/4 115 0.136330225 =r 116 117 ANSWER :D r= 13.63% 118 119 120 121 122 ... pv, lv, annuity CAP STRU VALUE PM, PMT loan with points LOCK BOX DILUTION DOLLAR COST AVG EXPO NPER APR CPI ear PVA pva 22 53 STATE 56 57 58 ... 6