The ideas behind nominal and effective interest rates are fairly simple, but you need to be sure that you understand the differences, and that you know which convention is used for which common rate quotes. At the heart of the difference is the idea of compound interest, so let’s start there. Throughout this article, we’ll […]
This article is for members only. You can become a member now by purchasing a
CFA® Level I Quantitative Methods Membership, CFA® Level I Membership, CFA® Level II Membership
This will give you access to this and all other articles at that membership level.