A compounding period is the [...] that interest is paid.
Answer
number of times per year
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#reading-6-time-value-of-money
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A compounding period is the [...] that interest is paid.
Answer
?
Tags
#reading-6-time-value-of-money
Question
A compounding period is the [...] that interest is paid.
Answer
number of times per year
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Subject 1 Time Value of Money and Interest Rates incorporate default risk. The return that borrowers pay thus comprises the nominal risk-free rate (real rate + an inflation premium) and a default risk premium.
Compounding is the process of accumulating interest over a period of time. <span>A compounding period is the number of times per year that interest is paid. Continuous compounding occurs when the number of compounding periods becomes infinite; interest is added continuously.
Discounting is the calculation of the present value of
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