What is the equivalent rate with quarterly compounding

Assignment Help Finance Basics
Reference no: EM132801855

An interest rate is 8% per annum when expressed with semi-annual compounding?

a. What is the equivalent rate with quarterly compounding?

b. What is the equivalent rate with continuous compounding?

c. What is the equivalent rate with annual compounding?

Reference no: EM132801855

Questions Cloud

Indicators in identifying interest rate : Discuss any FIVE (5) indicators in identifying interest rate.
What is the size of the semi-annual payments : A contract can be fulfilled by making an immediate payment of $7,500 or equal payments at the end of every 6 months for 10 years. What is the size of payments
Percent and market risk premium : Suppose the risk-free rate of return is 3.5 percent and the market risk premium is 7 percent.
Summarize the pros and cons of teaching strategies gold : In this era where reporting a child's progress is a top priority of schools and centers across the nation, portfolios are a supportive, comprehensive.
What is the equivalent rate with quarterly compounding : An interest rate is 8% per annum when expressed with semi-annual compounding?
What is the firm levered equity cost of capital : A firm can be worth $100 million (with 20% probability), $200 million (with 60% probability), then what is the firm's levered equity cost of capital
Estimate of the new levered value of the firm : 1. Corporation is currently an all-equity firm that has 80,000 shares of stock outstanding with a market price of $42 a share. The current cost of equity is 12%
What is the dollar and percentage change in price : (a) Compute the duration and modified duration of a 4 year bond that makes annual payments with a coupon rate of 9% and a YTM of 7%.
Why you rated yourself as you did in each area : Compare and contrast assessment in 21st century to assessment of the past. What has changed and why? What laws and reform movements have created the change?

Reviews

Write a Review

Finance Basics Questions & Answers

  Do equity shareholders appear to have gained or lost

Do equity shareholders appear to have gained or lost as a result of the recap in this revised scenario?

  Develop a deprecation table for the asset

Develop a deprecation table for this asset according to MACRS. The response must be typed, single spaced, must be in times new roman font (size 12).

  Work for the owners of the corporation

Corporate managers work for the owners of the corporation. Consequently, they should make decisions that are in the best interests of the owners

  Illustrate numerically that a savings account with a

show numerically that a savings account with a current balance of 1000 that earns interest at 9 annually is precisely

  What is the loan balance

Total initial friction costs equal $ 6,000. The loan is pre-paid after 4 years. What is the loan balance? What is the EBC

  Find the required return on equity

Other information: risk free rate = 4.0%, the market risk premium = 6.5%, tax rate = 40.0%. Using the average of the CAPM and DCF estimates, find the required return on equity.

  What will be the increase in pre-tax profits

A project has fixed costs of $1.000 per year, depreciation charges of $500 a year, revenue of $6,000 a year, and variable costs equal to two-thirds of revenues. If sales increase by 10%, what will be the increase in pre-tax profits?

  Capital organizational structure of a company

If indeed the software industry is driven by ‘brains and ideas' and not by ‘plant and equipment' (like automotives), what would the implications of that be on the ‘capital' organizational structure of a company and the need for a healthy mix of eq..

  Problem regarding the annuity problem

As part of his retirement planning, your uncle has been offered a security that promises to pay $50,000 at the end of each of the next 20 years.

  Expected annualized yield from transaction

Ninety-two days later, Steve sells the T-bill for $9,719. Determine Steve's expected annualized yield from this transaction.

  Case on eco plastics company

Since its inception, Eco Plastics Company has been revolutionizing plastic and trying to do its part to save the environment. Eoc s founder, Marion Cosby, developed a biodegradable plastic that her company is marketing to manufacturing companies t..

  What is the discounted cash flow concept

What is the discounted cash flow concept, and why is it essential for financial managers to understand and employ this important concept?

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