When interest is compounded more frequently than annually, what happens to the true rate of interest? Under

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When interest is compounded more frequently than annually, what happens to the true rate of interest? Under what condition would the stated and true rates of interest be equal? What is continuous compounding?

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Fundamentals of Investing

ISBN: 978-0133075359

12th edition

Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk

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Question Posted: Apr 28, 2015 03:33 AM

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When interest is compounded more frequently than annually, what happens to the true rate of interest? Under

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The true rate of interest rises as interest is compo...View the full answer

Fundamentals of Investing

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