Question: ( 1 + EAR ) = eAPR Interest Rate Quotes and Adjustments Earning a 5% return annually is not the same as earning 2.5% every

( 1 + EAR ) = eAPR Interest Rate Quotes and

( 1 + EAR ) = eAPR Interest Rate Quotes and Adjustments Earning a 5% return annually is not the same as earning 2.5% every six months (show it) Problem 1 1) What is the EAR equivalent of earning 2.5% every six months? 2) What semi-annual rate is the EAR of 5% equivalent to

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