What is the equivalent nominal interest rate

Assignment Help Finance Basics
Reference no: EM132680275

Consider a $100,000 loan with a 4yr term and an amortization term of 300 months with semi-monthly payments (6 payments per year). The loan is compounded semi-monthly and carries an interest rate of %1.76916. What is the equivalent nominal interest rate if the loan has quarterly payments and has the same effective rate?

Reference no: EM132680275

Questions Cloud

Questions based on sim and multi-index model : Request you to please answer the below questions based on SIM and Multi-Index Model. (Please use Yahoo finance)
What are your preliminary engagement activities : What are your preliminary engagement activities with regard to scheduling, scope, and key stakeholders? What will you use to establish a binding agreement.
How much principal and interest will be paid respectively : How much principal and interest will be paid respectively? In Year 10, how much principal and interest will be paid respectively?
Journalize entries for transactions of Blue Moon Company : Journalize entries for the following related transactions of Blue Moon Company: Purchased $60,000 of merchandise from Sierra Co. on account, terms 1/10, n/30
What is the equivalent nominal interest rate : What is the equivalent nominal interest rate if the loan has quarterly payments and has the same effective rate?
Describe the importance of databases : Describe the importance of databases and database management systems in managing organizational data and information. provide the types and some examples.
Journalize Mayn Co entries to record the purchase : Purchase-related transactions - Journalize Mayn Co.'s entries to record (a) the purchase (b) the merchandise return (c) the payment
Buying equity on margin : Suppose that it is the end of the day on Monday Feb 3. You have $10,000 to invest and decide to buy Tesla stock. At the end of the day on Tuesday Feb 4,
Explain what motivates you to do graduate work : Explain what motivates you to do graduate work in history and what your goals are, both within the graduate program and after the completion of your degree.

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the break-even cost per kilowatt-hour

Compact fluorescent lamps (CFLs) have become more popular in recent years, but do they make financial sense? Suppose a typical 60-watt incandescent light bulb.

  Determine the stocks current price

A corporation currently pays a dividend of $2 per share, D0=$2. It is estimated that the corporation's dividend will grow at a rate of 20 percent per year for the next 2 years,

  Does hedge accounting apply in given situation

Call Options Hedging Foreign Currency Debt. Taking advantage of lower interest rates in the United Kingdom, Carlton Inc., a U.S. firm, borrowed £2,000,000.

  Calculating debt ratio

The Altman Corporation has a debt ratio of 33.33%, and it needs to raise $100,000 to expand. Management feels that optimal debt ratio would be 16.67%.

  What is the variable cost pre unit under the high-capacity

If the firm bases its decisions on the Accounting Operating Profit Break-even, then what is the variable cost pre unit under the high-capacity alternative?

  Options market hedge

1.  Describe an “Options Market Hedge”; what would you purchase if you expected a curency to appreciate and what would you purchase if you expected a currency to depreciate? Why is it a Hedge?  2.  Should a firm hedge?  Yes or No?

  The target capital structure of qm industries is 40 common

the target capital structure of qm industries is 40 common stock 9 preferred stock and 51 debt. if the costs of common

  Over what range of discount rates would choose project a

Over what range of discount rates would you choose Project A? Project B? At what discount rate would you be indifferent between these two projects? Explain.

  What was the ratio of the federal deficit to gdp

What was the ratio of the federal deficit to GDP in 2015? What was the ratio of mandatory spending to total federal outlays in 2015?

  Relationship between interest rates and bond prices

What is the relationship between interest rates and bond prices; what do you understand by duration and how does it affect bond valuations?

  What ethical considerations might enter into decisions

What ethical considerations might enter into decisions that result in cash flow and stock price effects that are valued lower than they might otherwise have been?

  Support and commit to risk management activities

Why is it important for management to support and commit to risk management activities?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd