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An investor has the opportunity to make an investment that will provide an effective annual yield of 12 percent. She is considering two other investments of equal risk that will provide compound interest monthly and quarterly, respectively.

What must the equivalent nominal annual rate (ENAR) be for each of these two investments to ensure that an equivalent annual yield of 12 percent is earned?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92081984

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