Question 1098198
(a)To solve this, we need:
1959=1000*(1+r/4)^(4*6)
1.959=(1+r/4)^24
ln 1.959=ln (1+r/4)^24=24 ln (1+r/4)
ln (1+r/4)=0.02801808912343348753142591433615
e^ln (1+r/4)=1+r/4=e^0.02801808912343348753142591433615=1.0284142873661539848196528368801
r=.1137 or 11.37%
(b)(1+.1137/4)^4 -1=1.1185937952418743147625868352589-1=0.1186=11.86% EAR