Find the EAR for the stated rate (APR) of 12.4 percent compounded quarterly. (Enter your answer as a percentage, omit the "%" sign in your response, and round your answer to 2 decimal places. For example, 0.12345 or 12.345% should be entered as 12.35.)
Effective annual rate is the rate of interest an investor earns in a year after accounting for the effects of compounding.
It is calculated using the below formula:
EAR= (1+i/n)^n-1
Where i is the interest rate and n is the number of compounding periods in one year.
EAR= (1+0.124/4)^4-1
= 1.1299-1
= 0.1299*100= 12.99%
Therefore, the effective annual rate is 12.99%.
Find the EAR for the stated rate (APR) of 12.4 percent compounded quarterly. (Enter your answer...
Suppose you bought a bond with an annual coupon of 8 percent one year ago for $968. The bond sells for $947 today. Assuming a $1000 face value, what was your total nominal rate of return on this investment over the past year? (Negative amount should be indicated by a minus sign. Enter your answer as a percentage, omit the "%" sign in your response, and round your answer to 2 decimal places. For example, 0.12345 or 12.345% should be...
You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 6 percent, -15 percent, 22 percent, 35 percent, and 20 percent. Suppose the average inflation rate over this period was 3.4 percent and the average T-bill rate over the period was 4.2 percent. What was the average nominal risk premium on Crash-n-Burn's stock? (Enter your answer as a percentage, omit the "%" sign in your response, and round your answer to 2 decimal places. For example,...
A portfolio has 120 shares of Stock A that sell for $33 per share and 95 shares of Stock B that sell for $20 per share? What is the portfolio weight for Stock B? (Enter your answer as a percentage, omit the "%" sign in your response, and round your answer to 2 decimal places. For example, 0.12345 or 12.345% should be entered as 12.35.)
The effective annual rate (EAR) for a loan with a stated APR of 6% compounded quarterly is closest to: A. 6.14% B. 7.36% C. 7.98% D. 6.75%
Find the EAR in each of the following cases Stated Rate (APR) Number of Times Compounded Effective Rate (EAR) 11.50 % Quarterly % 14.50 % Monthly % 17.50 % Daily % 13.50 % Semiannually %
Find the APR, or stated rate, in each of the following cases (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g. 32.16.): Stated Rate (APR)Number of Times CompoundedEffective Rate (EAR)%Semiannually 11.4%Monthly12.3Weekly10.0Infinite13.7
Find the effective annual interest rate (EAR) for each of the following: 4.00 percent compounded quarterly. (Round answer to 2 decimal places, e.g. 15.25%.) Effective annual rate % 4.80 percent compounded monthly. (Round answer to 2 decimal places, e.g. 15.25%.) Effective annual rate% 6.50 percent compounded semiannually. (Round answer to 2 decimal places, e.g. 15.25%.) Effective Annual Rate % 4.50 percent compounded daily. (Round answer to 2 decimal places, e.g. 15.25%. Use 365 days for calculation.) Effective Annual Rate %
Find the APR, or stated rate, in each of the following cases. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. Use 365 days in a year.) Stated Rate (APR)Number of Times CompoundedEffective Rate (EAR)%Semiannually13.75%Monthly9.75Weekly11.25Daily9.25
Find the APR, or stated rate, in each of the following cases (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.): Stated Rate (APR)Number of Times CompoundedEffective Rate (EAR)%Semiannually11.1%Monthly19.6Weekly10.5Infinite8.4
A) A project that provides annual cash flows of $14369 for eight years costs $77894 today. What is the NPV for the project if the required return is 7 percent? (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places. (e.g., 32.16)) B) A project that provides annual cash flows of $17545 for eight years costs $75634 today. What is the NPV for the project if the required return is 19 percent? (Negative amount...