Semi-annual basis: Difference between revisions
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imported>Administrator (CSV import) |
imported>Doug Williamson (Expand to assist clarity, semi-annual not = periodic rate per 6 months.) |
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The quotation of a rate of return, or a cost, on the basis of a nominal annual rate for compounding twice per year. | |||
<b>Example</b> | |||
A rate of return quoted as an annual effective rate is 10.25%. | |||
The same rate of return quoted on a semi-annual basis is: | |||
(1.1025<sup>(1/2)</sup> -1) x 2 | |||
= 10%. | |||
== See also == | == See also == | ||
* [[Semi-annual rate]] | * [[Semi-annual rate]] | ||
[[Category:Debt_Capital_Markets]] | |||
[[Category:Cash_Management]] | |||
Revision as of 14:46, 19 October 2013
The quotation of a rate of return, or a cost, on the basis of a nominal annual rate for compounding twice per year.
Example
A rate of return quoted as an annual effective rate is 10.25%.
The same rate of return quoted on a semi-annual basis is:
(1.1025(1/2) -1) x 2
= 10%.
