Fight Finance

A bank quotes an interest rate of 6% pa with quarterly compounding. Note that another way of stating this rate is that it is an annual percentage rate (APR) compounding discretely every 3 months.

Which of the following statements about this rate is NOT correct? All percentages are given to 6 decimal places. The equivalent:

Convert a 10% effective annual rate $(r_\text{eff annual})$ into a continuously compounded annual rate $(r_\text{cc annual})$. The equivalent continuously compounded annual rate is:

Convert a 10% continuously compounded annual rate $(r_\text{cc annual})$ into an effective annual rate $(r_\text{eff annual})$. The equivalent effective annual rate is:

A continuously compounded monthly return of 1% $(r_\text{cc monthly})$ is equivalent to a continuously compounded annual return $(r_\text{cc annual})$ of:

A continuously compounded semi-annual return of 5% $(r_\text{cc 6mth})$ is equivalent to a continuously compounded annual return $(r_\text{cc annual})$ of: