If You Were Evaluating a Investment Over a 10-Year Period

Multiple Choice

If you were evaluating a investment over a 10-year period that paid 8% compounded semiannually:

A) you would not need to make any special adjustments because the semiannual compounding will not impact the investment's future value.
B) you would need to divide the number of years by two and multiply the interest rate by two to properly adjust for the semiannual compounding.
C) you would need to divide the interest rate by two and multiply the number of years by two to properly adjust for the semiannual compounding.
D) None of the above