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    Contemporary Financial Management Study Set 2
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    Exam 5: The Time Value of Money
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    What Is the Effective Rate of Interest on a CD
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What Is the Effective Rate of Interest on a CD

Question 63

Question 63

Multiple Choice

What is the effective rate of interest on a CD that has a nominal rate of 9.5 percent with interest compounded monthly?


A) 9.93%
B) 9.74%
C) 10.02%
D) 9.86%

Correct Answer:

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