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When comparing different investment opportunities (each with the same risk) with different interest ...

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When comparing different investment opportunities (each with the same risk) with different interest ...

When comparing different investment opportunities (each with the same risk) with different interest rates reported in different ways you should

▸ convert each interest rate to a monthly nominal rate.

▸ convert each interest rate to an effective annual rate.

▸ convert each interest rate to an annual nominal rate.

▸ convert each interest rate to an APR.

▸ compare them by using the published annual rates.

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Corporate Finance

Edition: 5^th

Author: Booth

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kristen299 Author

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Thanks for your help!!

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Thank you, thank you, thank you!

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You make an excellent tutor!

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