Question: Assume the inflation rate is ( 3 . 2 5 % ) APR, compounded annually. Would you rather earn a nominal return

Assume the inflation rate is \(3.25\%\) APR, compounded annually. Would you rather earn a nominal return of \(5.07\%\) APR, compounded semiannually, or a real return of \(2.01\%\) APR, compounded quarterly? (Note: Be careful not to round any intermediate steps less than six decimal places.)
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To put these on the same basis, you must convert them both to nominal EARs
The EAR for \(5.07\%\) APR, compounded semiannually is
(Type your answer in decimal format. Round to six decimal places.)
 Assume the inflation rate is \(3.25\%\) APR, compounded annually. Would you

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