I got stated annual rate as 0,081483747

after applying EAR formula I`m getting higher values through, can somebody help?

I got stated annual rate as 0,081483747

after applying EAR formula I`m getting higher values through, can somebody help?

Your EAR is correct.

How are you converting that to a continuous rate, a stated rate compounded daily, and a stated rate compounded semiannually?

I`m doing

EAR = (1+0,081483747/365)^{365} than -1 and multiply by 100, got 8,48 for daily lol

One down, two to go.

For semi I got 0,083143648

for continuous got 0,084370898

non of them are the answers…

I didn’t ask what you got; I asked how you got them.

Your semiannual rate is wrong.

EAR = (1+0,081483747/365)^{365} than -1 and multiply by 100, got 8,48 for daily lol

well I applyed that formula…

The rate of 8.1483747% is the EAR.

How can I get the other values than?

What’s the formula that relates EAR to the continuously compounded rate?

What’s the formula that relates EAR to stated rate?

EAR = ers − 1 ?

What’s ers?

It makes me very happy to see you doing this kind of problem by hand in order to understand the mechanics.

I know you use the HP, but the BA II has a nominal to EAR converter. Does the HP have something similar? It would save you time and grief.

I don`t think the HP12c has a function like that…

You mean the BA II you don`t need to know the EAR formula to convert?

The calculator does it all?

I don`t know it`

s the formula that is in the book for EAR…

No, it’s not.

Maybe you’re forgetting a superscript?

The only way I found to do is 500000 CHS PV 800000 FV 12N 0 PMT

asks for i = 3,9944 than i multiply for 2 get nearly 8% semianually compounded

Pretty sure there`s a alternative to do it through, was looking for it…

ImBruces:

The only way I found to do is 500000 CHS PV 800000 FV 12N 0 PMT

asks for i = 3,9944 than i multiply for 2 get nearly 8% semianually compounded

Pretty sure there`s a alternative to do it through, was looking for it…

That’s the semiannually compounded stated rate:

Stated rate_{semiannual} = [(1 + EAR)^{1/2} – 1] × 2

More generally, for compounding *n* times per year:

Stated rate__{n}_ = [(1 + EAR)^{1/n} – 1] × *n*

Now . . . what about the continuously compounded formula?

ImBruces:

The only way I found to do is 500000 CHS PV 800000 FV 12N 0 PMT

asks for i = 3,9944 than i multiply for 2 get nearly 8% semianually compounded

By the way: there’s your answer: C.

S2000magician:

ImBruces:The only way I found to do is 500000 CHS PV 800000 FV 12N 0 PMT

asks for i = 3,9944 than i multiply for 2 get nearly 8% semianually compounded

Pretty sure there`s a alternative to do it through, was looking for it…

That’s the semiannually compounded stated rate:

Stated rate

_{semiannual}= [(1 + EAR)^{1/2}– 1] × 2More generally, for compounding

ntimes per year:Stated rate_

_{n}_ = [(1 + EAR)^{1/n}– 1] ×nNow . . . what about the continuously compounded formula?

In what page of the CFA curriculum is this formula?