9514 1404 393
Answer:
5.99%
Step-by-step explanation:
The relationship between the effective annual yield (e) and the nominal annual interest rate (r) compounded n times per year is ...
e = (1 +r/n)^n -1
For r = 5.9% and n = 2, the effective rate is ...
e = (1 +0.059/2)^2 -1 = 0.059870 ≈ 5.99%
