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    Derivatives Study Set 1
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    Exam 24: Term Structure of Interest Rates: Concepts
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    If the One Year Rate Expressed with Semi-Annual Compounding Is
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If the One Year Rate Expressed with Semi-Annual Compounding Is

Question 24

Question 24

Multiple Choice

If the one year rate expressed with semi-annual compounding is 6%, what is the equivalent rate with quarterly compounding.


A) 3.00%
B) 5.87%
C) 5.96%
D) 6.00%

Correct Answer:

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