a. If an interest rate is given as 12 percent compounded daily, what do we call this
Question:
a. If an interest rate is given as 12 percent compounded daily, what do we call this rate?
b. What is an APR? What is an EAR? Are they the same thing?
c. In general, what is the relationship between a stated interest rate and an effective interest rate? Which is more relevant for financial decisions?
d. What does continuous compounding mean?
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a If an interest rate is given as 12 percent compounded daily we call it the nominal or stated interest rate b APR stands for Annual Percentage Rate I...View the full answer
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Related Book For 
Fundamentals of corporate finance
ISBN: 978-0073382395
9th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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