Why is the EAR for 6% APR , with semi-annual compounding, higher than 6%?

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Fundamentals of Corporate Finance

ISBN: 978-0321818171

2nd Canadian edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

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Question Posted: Jan 05, 2019 12:41 PM

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Why is the EAR for 6% APR , with semi-annual compounding, higher than 6%?

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The EAR increases when disc...View the full answer

Fundamentals of Corporate Finance

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