1. What is the Effective Annual Interest Rate for an asset that is purchased on December 15, 2015 for $875 and sold 27 months later (on March 15, 2018) for $1,099?
2. A bond pays interest on a semi-annual basis and has a coupon rate of 9%.
The interest is paid on April 1 and October 1 of each year.
If it is currently July 3, how much interest has accrued since the last interest payment?
3. What is the effective rate on a hypothetical investment that has a nominal rate of 7.9%, but it is CONTINUOUSLY compounded?