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What nominal annual interest rate on the second investment

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An investment pays you an annual 9% nominal interest rate compounded semiannually (4.5 percent twice a year). A second investment of equal risk has a different annual nominal interest rate but interest is compounded monthly (12 times a year). What nominal annual interest rate on the second investment would you have to receive to make you indifferent (same effective rate) between the two investments?

Reference no: EM133005156

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