Semi-annual rate: Difference between revisions
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Revision as of 13:59, 9 October 2013
The semi-annual rate is the simple annual interest quotation for compounding twice a year.
For example if the semi-annual rate is quoted as 10%, then the periodic interest accruing is 5% (= 10% x 6/12) per six month period.
A semi-annual rate is an example of a nominal annual rate.
Not to be confused with the annual effective rate, which in this case would be = 1.052 - 1 = 10.25%.
