Convert the Number 0

question 197

Multiple Choice

Convert the number 0.505 to a fraction in simplest form.

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Definitions:

Semi-Annual Interest

Interest on a loan or security that is calculated and paid twice a year, often resulting in a compounding effect on the total interest earned or owed.

Coupon Bonds

Bonds that pay periodic interest payments to the holder based on a fixed interest rate (the coupon rate) until maturity, at which point the principal is repaid.

Effective Annual Rate

The interest rate on an investment or loan that is compounded annually, indicating the actual annual return taking into effect compounding over the year.