SO here's my problem that i hope you guys/gals can help me with.
A bank offers customers 6.6% compounded quarterly on all savings accounts.
1. If management wanted to change to an interest rate paid monthly, what nominal rate should the bank set to maintain the same effective rate?
2. Suppose management decides to offer an interest rate with semi-annual compounding instead of monthly for these savings accounts. What would be the equivalent nominal interest rate compounded semi-annually?
thanks in advance.