What is the stated rate for compounding semi-annually

Assignment Help Finance Basics
Reference no: EM13279825

The effective annual rate is 3% (i.e., re = .03). What is the stated rate for compounding semi-annually that is associated with this effective rate? That is, solve for rs such that 1+re = (1+(rs/2))2 given re = .03.

Reference no: EM13279825

Questions Cloud

Explain what is the percentage of caso4 in the mixture : A mixture containing only BaSO4 and CaSO4 contains one-half as much Ba2+ as Ca2+ by weight. What is the percentage of CaSO4 in the mixture
What is the final speed of the train : A train has a mass of 5.22 ? 106 kg and is moving at 79.0 km/h. The engineer applies the brakes, What is the final speed of the train
How to derive the expression for the capacitor voltage : The rectangular shaped current pulse is applied to 0.5microFarad capacitor.The initial voltege on the capacitor is a 20V drop in the reference direction of the current. Assume the passive sign convention. Derive the expression for the capacitor vo..
Find macaulay duration and modified duration : Find the duration of a bond with settlement date May 27, 2012, and maturity date November 15, 2021. The coupon rate of the bond is 7%, and the bond pays coupons semiannually. The bond is selling at a yield to maturity of 8%. Find Macaulay duration..
What is the stated rate for compounding semi-annually : The effective annual rate is 3% (i.e., re = .03). What is the stated rate for compounding semi-annually that is associated with this effective rate? That is, solve for rs such that 1+re = (1+(rs/2))2 given re = .03.
Design a digital lock to enter a secret three-digit code : design a digital lock. The lock will have four buttons for you to enter a secret three-digit code to unlock it. You will use the pushbuttons RON(3:0) on the FPGA board for this - RON(0) will represent the digit ‘0', RON(1) the digit ‘1', RON(2) th..
What net force is acting on the mass along the incline : An object of mass 1.9 kg starts from rest and slides down an inclined plane 80 cm long in 0.46 s
Describe the computation of npv for foreign projects : Describe the computation of NPV for foreign projects. Explain how to choose currency conversion methods (ie, spot vs forward rates) and domestic or host country interest rates in determining the proper discount rates.
Competitive strategies and compensation practices : Discuss the various factors that influence a company%u2019s competitive strategies and compensation practices. Assess how a company can mitigate these factors using effective compensation practices.

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the cash-flow adjusted rate of return

At the end of December, the account is worth $3,060,000.00. What is the cash-flow adjusted rate of return for December?

  Calculate expected rate of return on the stock

Rate of Return. Steady As She Goes, Corporation will pay a year-end dividend of $3 per share. Investors expect the dividend to increase at a rate of 4% indefinitely.

  Determination of monthly payments

Bill Gates wishes to fund a new charter school to forever receive $10 million yearly starting in five years. After the fund is completed in 5-years, it will earn 8% interest compounded yearly.

  Finance-net present value-payback

Project K costs $52,125, its expected net cash inflows is $12,000 per year for eight years, and its WACC is 12%. What's the project's NPV? What's the project's IRR?

  What is the discounted payback period for these cash flows

An investment project has annual cash inflows of $5,700, $6,800, $7,600, and $8,900, and a discount rate of 13 percent.

  What is the effective cost of borrowing in this case

Your firm has an average collection period of 27 days. Current practice is to factor all receivables immediately at a 1.70 percent discount.

  Explain the primary roles of the u.s. federal reserve

Briefly explain the primary roles of the U.S. Federal Reserve, the Federal Reserve Chairman, and the Federal Reserve Board. Indicate each party's effectiveness in today's economic environment. Provide support for your explanation.

  Compute the cost of preferred stock for medco corp

Medco Corporation can sell preferred stock for $106 with an estimated flotation cost of $2. It is anticipated that the preferred stock will pay $6 per share in dividends.

  Calculation of after-tax cost of debt and cost of equity

Calculation of After-Tax Cost of Debt and Cost of Preferred Stock and Cost of Equity and WACC under CAPM

  Discount future cash flows

How long will Austin have to use the system to justify the additional expense over the conventional model and discount future cash flows before calculating payback and round to a whole year.

  Capital budgeting for new computerized assembly line

Propose to launch a new computerized assembly line, which costs $5,000,000, for replacing the existing assembly line.

  Compute amount which you will need to deposit

You have budgeted which you will need to be capable to withdraw $2,000 per month from your account at start of each month of your holiday. The nominal interest rate on your savings account is 4.5 percent per annum compounded monthly.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd