Semi-annual rate

From ACT Wiki
Revision as of 15:07, 19 October 2013 by imported>Doug Williamson (Spacing.)
Jump to navigationJump to search

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%.


See also