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Determine the semi-annual effective rate equivalent

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To determine the semi-annual effective rate equivalent to a semi-annual quarterly capitalization rate, the following is due:

A. Square the square root of the nominal plus one

B. Square the nominal rate

C. Divide the nominal by two; second, square it and subtract one

D. Divide the nominal by two and square the capitalization rate plus one and then subtract one

Reference no: EM132632673

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