Tyler invested $100,000 over 15 years at a nominal rate of 4% compounded semiannually. You received your
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Question:
Tyler invested $100,000 over 15 years at a nominal rate of 4% compounded semiannually.
You received your interest in cash every 6 months and then received your principal at the end of 15 years.
Tyler reinvested his interest payments at a nominal rate of 3% compounded quarterly.
At the end of 15 years, what is Tyler's nominal annual rate of return compounded semiannually on his $100,000 investment over the 15-year period?
Related Book For
Corporate Finance A Focused Approach
ISBN: 978-1305637108
6th edition
Authors: Michael C. Ehrhardt, Eugene F. Brigham
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