The Effective Yield Is the Annual Rate I That Will

question 377

Multiple Choice

The effective yield is the annual rate i that will produce the same interest per year as the nominal rate compounded n times per year.For a rate that is compounded n times per year,the formula for effective yield is given as Find the effective yield for a nominal rate of 9%,compounded monthly.Round your answer to two decimal places. ​

• A) ​0.94%
• B) ​9.62%
• C) ​10.01%
• D) ​1.50%
• E) ​9.38%

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