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The compounding frequency for an interest rate defines
A.The frequency with which interest is paid
B. A unit of measurement for the interest rate
C.The relationship between the annual interest rate and the monthly interest rate
D.None of the above
A.The frequency with which interest is paid
B. A unit of measurement for the interest rate
C.The relationship between the annual interest rate and the monthly interest rate
D.None of the above
Answer: B
The compounding frequency is a unit of measurement. The frequency with which interest is paid may be different from the compounding frequency used for quoting the rate.
The compounding frequency is a unit of measurement. The frequency with which interest is paid may be different from the compounding frequency used for quoting the rate.
Karteninfo:
Autor: CoboCards-User
Oberthema: Finance & Investment
Thema: Derivatives
Veröffentlicht: 27.10.2015