Question: need help only on C and D. 4. Let rm be the interest rate with m compoundings per year, for example, m=12 means monthly compounding.
need help only on C and D.
4. Let rm be the interest rate with m compoundings per year, for example, m=12 means monthly compounding. a. Derive the formula to convert rm to rn for general m,n=1,2,4,12. b. Let rc be the continuous compounding rate. Derive the formula to convert rm to rc and vice versa. c. Convert a simple add-on rate, r0, to a compounded rate rm( m=1,2,4,12 ), and vice versa. d. Convert a simple add-on rate, r0, to a continuously compounded rate, rc, and vice versa. e. For m
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