Question 730128
.
Find the effective rate corresponding to the given nominal rate. 
(Assume a 365-day year. Round your answer to two decimal places.)
7%/year compounded semiannually
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<pre>
    The effective annual rate is  {{{(1+0.07/2)^2-1}}} = 1.071225 - 1 = 0.071225.    <U>ANSWER</U>
</pre>

Solved.


The number of days in the year is irrelevant in this problem.