Semi-annual rate: Difference between revisions
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imported>Doug Williamson m (Spacing.) |
imported>Doug Williamson m (Link with qualifications page.) |
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== See also == | == See also == | ||
* [[Annual effective rate]] | * [[Annual effective rate]] | ||
* [[CertFMM]] | |||
* [[Nominal annual rate]] | * [[Nominal annual rate]] | ||
* [[Semi-annual basis]] | * [[Semi-annual basis]] | ||
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[[Category:Long_term_funding]] | [[Category:Long_term_funding]] | ||
[[Category:Manage_risks]] | |||
[[Category:Cash_management]] | [[Category:Cash_management]] | ||
Revision as of 15:48, 1 November 2014
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.
The semi-annual rate is not to be confused with the periodic rate per 6 months, which in this case is 5%.
Nor should it be confused with the related annual effective rate, which in this case would be = 1.052 - 1 = 10.25%.
