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An investment opportunity promises a stated interest rate

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Reference no: EM13730505

An investment opportunity promises a stated interest rate of 6 percent with semi-annual compounding. Which of the following statements is most correct?

A. The periodic rate is greater than 3 percent.

B.   The periodic rate is less than 3 percent.

C. The effective annual rate is less than 6 percent.

D. The effective annual rate is greater than 6 percent.

E. The effective annual rate is 6 percent.

Reference no: EM13730505

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