What must the nominal interest rates be on the second option

Reference no: EM13295573

Mr. Ace Investor has $10,000 to invest for one year. He has three investment alternatives: (1) earn 8%, compounded annually, (2) earn interest compounded quarterly, and (3) earn interest compounded monthly. What must the nominal interest rates be on the second and third options to make all the investments earn the same yield?

Reference no: EM13295573

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