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  3. Study Set
    Contemporary Financial Management Study Set 2
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    Exam 6: Continuous Compounding and Discounting
  5. Question
    The Nominal Interest Rate and the Effective Interest Rate Are
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The Nominal Interest Rate and the Effective Interest Rate Are

Question 11

Question 11

Multiple Choice

The nominal interest rate and the effective interest rate are equivalent when compounding occurs ____.


A) once a year at the end of the year
B) every quarter
C) semiannually
D) monthly

Correct Answer:

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