Revision as of 00:19, 26 November 2023 by Admin (Created page with "What is the nominal discount rate convertible 3 times per year which is equivalent to a nominal interest rate of 6% convertible 6 times per year? <ul class="mw-excansopts"> <li>0.057</li> <li>0.0591</li> <li>0.06</li> <li>0.062</li> <li>0.067</li> </ul> '''References''' {{cite web |url=https://web2.uwindsor.ca/math/hlynka/392oldtests.html |last=Hlynka |first=Myron |website=web2.uwindsor.ca | title = University of Windsor Old Tests 62-392 Theory of Interest | access-da...")
ABy Admin
Nov 26'23
Exercise
What is the nominal discount rate convertible 3 times per year which is equivalent to a nominal interest rate of 6% convertible 6 times per year?
- 0.057
- 0.0591
- 0.06
- 0.062
- 0.067
References
Hlynka, Myron. "University of Windsor Old Tests 62-392 Theory of Interest". web2.uwindsor.ca. Retrieved November 23, 2023.
ABy Admin
Nov 26'23
Solution: B
[[math]]
(1+.06 / 6)^6=\left(1-d^{(3)} / 3\right)^{-3} \text { so } d^{(3)}=3\left(1-1.01^{-2}\right)=.0591
[[/math]]
References
Hlynka, Myron. "University of Windsor Old Tests 62-392 Theory of Interest". web2.uwindsor.ca. Retrieved November 23, 2023.