What nominal interest rate compounded semi-annually is equivalent to 5.26% compounded quarterly?
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26% interest rate compounded quarterly. The formula for EAR is: EAR = (1 + i/n)^(nt) - 1 where: i = nominal interest rate = 5.26% = 0.0526 n = number of compounding periods per year = 4 (quarterly) t = number of years = 1 So, EAR = (1 + 0.0526/4)^(4*1) - 1 = Show more…
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