Assuming Semi-Annual Compounding and a Quoted Mortgage Rate of 9

Multiple Choice

Assuming semi-annual compounding and a quoted mortgage rate of 9 percent, what are the effective annual rate and the effective monthly rate?

A) 4.5 percent, 1 percent
B) 9 percent, 0.75 percent
C) 9.2 percent, 0.736 percent
D) 18.81 percent, 0.75 percent
E) 18.81 percent.0.736 percent