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    Exam 4: Interest Rates
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    An Interest Rate Is 5% Per Annum with Continuous Compounding
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An Interest Rate Is 5% Per Annum with Continuous Compounding

Question 18

Question 18

Multiple Choice

An interest rate is 5% per annum with continuous compounding.What is the equivalent rate with semiannual compounding?


A) 5.06%
B) 5.03%
C) 4.97%
D) 4.94%

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