Compare different investment opportunities

Assignment Help Financial Management

Reference no: EM131444262

1. In order to compare different investment opportunities (each with the same risk) with interest rates reported in different manners you should

a) convert each interest rate to an annual nominal rate

b) convert each interest rate to a monthly nominal rate

c) convert each interest rate to an effective annual rate

d) compare them by using the published annual rates

e) convert each interest rate to an APR

2. A given rate is quoted as 8% annual percentage rate (APR), but has an effective annual rate (EAR) of 8.30%. What is the frequency of compounding during the year?

a) Weekly

b) Monthly

c) Quarterly

d) Semiannually

e) Annually

Reference no: EM131444262

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