Calculate semi-annual rate that is equivalent to six percent

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Problem 1: Calculate the semi-annual rate that is equivalent to 6% per quarter. (Please report your answer to at least three digits after the decimal point.)

Problem 2: Suppose expected inflation is 8% and the real interest rate is 10%. What is the nominal interest rate? (Please report your answer to at least three digits after the decimal point.)

Problem 3: Consider an effective annual yield of 21% per year. Convert this into an APR interest rate in a situation where payments are made every 4 months.

Reference no: EM132969456

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