Note: These topics are all discussed in the text, but I am ...
Computing the Annual nominal rate given the effective rate • What is the annual nominal rate compounded monthly for a CD that has an annual percentage yield of 5.9%? • 1. Use the general formula for APY. • 2. Substitute value of APY and 12 for m (number of compounding periods per year). • 3. Add one to both sides • 4. ................
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