Ram purchased a bond with a specified interest rate of 16%. He has invested $100,000
Assuming that the bond is compounded annually, which of the following statement(s) is true?
a The real interest rate is 16%
b. The effective interest rate will be more than 16%
Both effective interest rate and nominal interest rate will be 16%
d. None of the above
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Answer: with a specified interest rate of 16%. He has invested $100,000 Assuming that the bond is compounded annually, which of the following statement(s) is true? a The real interest rate is 16% b. The effective interest rate will be more than 16% Both effective interest rate and nominal interest rate will be 16%
Explanation:it is true
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