What is effective annual rate

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1. If the nominal interest rate per year is 8.50% and the inflation rate is 1.90%, what is the real rate of interest?

2. A bond has a six month holding period return of 3.2%. What is the effective annual rate?

 

3. A stock earns a monthly return of 0.75%. What is the equivalent annualized rate of return?

Reference no: EM131569465

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