Why is the EAR superior to the APR in measuring the true economic cost or return?

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Fundamentals of corporate finance

ISBN: 978-0470876442

2nd Edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

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Question Posted: Jun 08, 2012 01:26 AM

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Why is the EAR superior to the APR in measuring the true economic cost or return?

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Unlike the APR which reflects annual compounding the EAR ...View the full answer

Fundamentals of corporate finance

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