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    Financial Markets and Institutions Study Set 6
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    Exam 2: Determinants of Interest Rates
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    Earning a 5% Interest Rate with Annual Compounding Is Better
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Earning a 5% Interest Rate with Annual Compounding Is Better

Question 33

Question 33

True/False

Earning a 5% interest rate with annual compounding is better than earning a 4.95% interest rate with semiannual compounding.

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