The effective rate of interest for a sum of money compounded quarterly is 12.55%. What is its nominal yield ?

CS Executive · Financial and Strategic Management · PYQS · December 2019
The effective rate of interest for a sum of money compounded quarterly is 12.55%. What is its nominal yield ?
(A) 12.05%
(B) 12.25%
(C) 12.15%
(D) 12%

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Financial Management

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