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4 = 1.0609, giving r = 5.96%. Note that the quarterly compounded rate must be smaller than the semiannually compounded rate, ruling out 6.12 automatically.

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Explanation: References:

NEW QUESTION: 3
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NEW QUESTION: 1
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A. 5.96%
B. 6.12%
C. 5.91%
D. 5.76%
Answer: A
Explanation:
Explanation/Reference:
Explanation:
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