What is the equivalent rate, compounded quarterly?

finance

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1. You are quoted an interest rate of 1.2% p.a., compounded monthly: 

a. What is the equivalent rate, compounded quarterly? 

b. What continuously-compounded rate delivers the same return? 


2. You are expecting to receive €1,000 in four years’ time: 

a. What’s the present value of this amount if the discount rate is 1.5% p.a., 

i. Compounded semi-annually? 

ii. Compounded continuously?

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