Question: An interest rate is 5% per annum with continuous compounding. What is the equivalent rate with semiannual compounding? A. 5.06% B. 5.03% C. 4.97% D.

An interest rate is 5% per annum with continuous compounding. What is the equivalent rate with semiannual compounding?

A. 5.06% B. 5.03% C. 4.97% D. 4.94%

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