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Finance Chapter 5

  1. Interest rate conversion Step #3 changes the quotation period or the compounding period?
    The quotation period changes, compounding period does not. Changing effective rate to a non-effective rate.
  2. Interest rate conversion Step #2 changes the quotation period or the compounding period?
    In Step #2 both the quotation period and the compounding period change. Changes one effective rate to another effective rate.
  3. What is APR?
    Annual Percentage Rate
  4. Interest rate conversion Step #1 changes the quotation period or the compounding period?
    Quotation period changes in Step #1. Changes from non-effective rate to effective rate.
  5. How are credit care rates quoted?
    • Year compounding daily.
    • QP =year
    • CP = daily
  6. What is EAR?
    Effective Annual Rate
  7. How are Canadian mortgage rates quoted?
    • Yearly compounding semiannually
    • QP = Year
    • CP = semiannual
Author
Chas
ID
337770
Card Set
Finance Chapter 5
Description
Finance Chapter 5
Updated

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